IMF's Global Economic Forecast: Sustainability and Growth

The International Monetary Fund's (IMF) updated global economic growth forecasts, to be released next week, will confirm the resilience of the global economy despite trade shocks and report "quite strong" growth, the fund's managing director Kristalina Georgieva said in an interview with Reuters during his visit to Ukraine.

She said trade shocks have not derailed the global economy from its growth trajectory, although risks remain, but are tilted to the downside. Georgieva hinted that the fund could slightly raise its forecasts again after in October raising its expectations for global gross domestic product growth in 2025 from 3% to 3,2%.

Main risks

The IMF will publish its January update of the World Economic Outlook on January 19. According to Georgieva, the main risks facing the economy are related to geopolitical tensions and rapid technological changes, including the possibility that investments in artificial intelligence may not lead to the expected increase in productivity.

She stressed that a number of countries have failed to build up sufficient reserves to deal with future shocks. She said the fund already has about 50 active financial assistance programs and is preparing for the possibility that more countries may seek support.

Georgieva described the US economic performance as "impressive" despite the tariffs imposed last year by President Donald Trump, noting that their impact was limited as tariff levels remained below those initially announced and most countries refrained from retaliating.