Kristalina Georgieva Highlights India’s Economic Resilience Ahead of IMF-World Bank Meet

According to Kristalina Georgieva, Managing Director of the International Monetary Fund, India is emerging as a major engine of global growth. Ahead of the 2025 IMF-World Bank Annual Meeting, the IMF chief said, "Global growth is projected to be around 3% in the medium term. This was 3.7% before the pandemic." She said that global growth patterns have been changing over the past few years, particularly with China's growth rate steadily declining.

Speaking at the IMF and World Bank Annual Meetings in Washington, D.C., Georgieva described India as a major engine of global growth. Georgieva cited four reasons for India's economic resilience. She stated that improved policy and fundamentals, strong private sector performance, a less-than-expected initial impact of tariffs, and supportive financial conditions have strengthened the country's economic standing. However, Georgieva noted that the full impact of tariffs is yet to be fully realized.

Speaking about the United States, Georgieva said that a squeeze on margins could lead to higher prices there. This is expected to impact monetary policy and growth. Georgieva also stated that global resilience "has not yet been fully tested." She warned that rising gold demand and easy financial conditions could mask weaknesses.

Georgieva cautioned countries to focus on increasing private sector productivity through reforms that strengthen institutions, protect property rights, and promote fair competition. She also urged Asian economies to increase internal trade to boost long-term GDP.