IMF Chief Warns of High Economic Policy Uncertainty

IMF Managing Director Kristalina Georgieva highlighted growing uncertainty in global economic policies during the G20 Finance Ministers and Central Bank Governors' meeting in Cape Town, CE Report quotes Anadolu Agency

She pointed to significant policy shifts in the US, including changes in trade, taxation, public spending, immigration, and deregulation, which could have broad economic implications. Other countries are also adjusting their policies, creating complex and evolving global impacts.

Georgieva noted diverging risks, with short-term optimism in the US but potential downsides for other economies, including disruptions to disinflation and capital outflows from emerging markets.

The IMF projects global economic growth at 3.3% for 2025 and 2026, steady but below historical averages amid high public debt. While the US shows stronger growth, the EU's recovery is expected to be slower. Meanwhile, global disinflation continues.