Georgieva: The world economy is doing better than we expected

International Monetary Fund Managing Director Kristalina Georgieva told the G20 summit in Johannesburg that the global economy has shown unexpected resilience in the face of crises and trade tensions. The world economy is performing better than the Fund had originally anticipated, reports The Business Times.

However, Georgieva also warned that economic growth remains steadily below pre-pandemic levels. She said it is being held back primarily by high debt and economic uncertainty in developing countries.

She called on governments to boost confidence through credible and predictable policies, rebuild reserves and address domestic imbalances that feed broader global vulnerabilities. It also stated that structural reforms are needed to unlock the potential of the private sector.

The Director-General also confirmed that the Fund will expand its quota resources by 50 percent, a decision supported by G20 members.

She warned that the rapid development of artificial intelligence could boost global growth, but its impact would be uneven and developing countries must receive adequate investment in digital infrastructure.

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