IMF Managing Director Kristalina Georgieva has identified India as a major driver of global economic expansion, describing it as a crucial growth engine during the IMF–World Bank Annual Meetings held in Washington, DC on Monday.
Georgieva noted that global growth is projected to average around 3% in the medium term, compared to 3.7% before the pandemic, and highlighted a shift in global growth dynamics — with China’s economy slowing while India’s momentum strengthens.
She attributed the world economy’s resilience to four key factors: stronger policy frameworks, the private sector’s adaptability, milder-than-expected tariff effects, and favourable financial conditions. However, Georgieva cautioned that this resilience remains untested, as easy financing and a rise in gold demand may be masking deeper vulnerabilities.
On global trade, she warned that the full impact of trade tensions is yet to emerge. In the United States, reduced profit margins could result in price increases, driving inflation and influencing monetary policy. Meanwhile, redirected goods from the US market could lead to further tariff escalations in other regions.
