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The dark clouds of uncertainty are still holding over the global economy, but the relief is that it has done better than feared, highlighted Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF).
Amid ongoing uncertainty surrounding the global economy, the IMF Chief expressed a sense of relief that the world economy has performed better than expected. Speaking at a press briefing during the IMF Annual Meetings, Georgieva said that although the global economy is showing resilience, challenges and anxieties continue to weigh on the outlook. "It's a sense of relief that the world economy is holding. It has done better than we feared then, in April, but there is also still a sense of anxiety because the performance of the world economy is less than we need it to be and because there is a very dark cloud of uncertainty still holding over our heads," she said. Georgieva noted that uncertainty has now become "the new normal," but also highlighted a positive outlook among IMF members who are determined to move forward. "What I also find very positive from the meetings is that there is a sense of looking forward. It may be difficult, but we need to roll our sleeves. We need to navigate through this fog of uncertainty," she added. Outlining the key priorities for the IMF and its members in the months ahead, Georgieva identified three major areas of focus. The first priority is strengthening fundamentals, which includes rebuilding fiscal buffers, reducing debt levels, and investing in strong institutions and policy frameworks to ensure macroeconomic and financial stability. The second area of focus is taking determined steps to durably boost growth. She emphasized that discussions during the meetings largely revolved around how to achieve stronger and more sustainable growth. Georgieva said this can be done by embracing "regulatory housekeeping" to unlock private sector potential, drive productivity, and enhance dynamism. The third priority she mentioned is reducing excessive global imbalances. She recalled that this issue was discussed earlier in the spring, and members agreed that more effort is needed to create a more balanced global economy. "We continue to see an understanding across the membership that we need a more balanced world economy, boosting demand in surplus countries, consolidating in deficit countries. It is a global issue, but the work has to be done at home," she explained. Concluding her remarks, Georgieva said that in a world of heightened uncertainty, IMF members have expressed strong support for the Fund's role as an anchor of stability, underscoring its continued importance in guiding global economic policy and cooperation. (ANI)
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