IMF Managing Director Kristalina Georgieva made the observation on Thursday in Washington, D.C., during her presentation of the Global Policy Agenda at the ongoing Annual Meetings of the World Bank Group.
Georgieva noted that while uncertainty remains elevated, several key fundamentals have improved significantly over the past decade.
“Gold values too have shown such resilience in the face of uncertainty and profound transformations in geopolitics, technology, trade relations, and demography,” she said.
According to her, two main factors underpin the current global economic outlook: improved policy fundamentals and the adaptability of the private sector.
“Since the global financial crisis, many countries, especially emerging markets, have pursued sound policies. They have strengthened their institutions and frameworks—this investment is paying off,” she explained. “Secondly, the private sector has shown remarkable agility in managing disruptions through import front-loading, supply chain strengthening, and overall adaptability.”
Despite these positives, Georgieva described the medium-term growth outlook as “underwhelming.”
“Public debt is near record highs and continues to climb, and the global economy is excessively imbalanced,” she warned. “The forces of change are making the global economy less predictable, and it is impacting people. People are anxious; they are taking to the streets to demand better opportunities.”
The IMF chief urged policymakers to unlock private sector growth by advancing domestic reforms that support innovation and job creation.
“For the private sector to thrive, countries must push ahead with broad and ambitious domestic reforms,” she said. “I have encouraged our members to embrace a regulatory housecleaning to help foster innovation and entrepreneurship.”
Georgieva also emphasized the importance of keeping trade as an engine of global growth, stressing that this can only happen where strong institutions, free and fair markets, and macroeconomic stability exist.
She outlined fiscal and monetary policy priorities for countries navigating today’s uncertain environment: rebuilding fiscal buffers, reducing debt, relying more on domestic revenues, and preserving financial stability.
On global imbalances, she urged countries with large surpluses—such as China—to stimulate domestic demand through increased social spending rather than heavy industrial subsidies. Conversely, nations with persistent deficits, including the United States, should reduce fiscal imbalances and encourage higher private savings.
Georgieva said the IMF is pursuing several internal reforms to enhance its effectiveness, including a comprehensive surveillance review to sharpen policy advice and a conditionality review aimed at improving programme design.
She called on member countries to replenish key financial support instruments such as the Catastrophic Containment and Relief Trust (CCRT), which was heavily used during the COVID-19 pandemic but is now depleted.
“For new shocks to come, we need to seriously consider replenishing it,” she said, adding that the Fund will continue work on the Global Sovereign Debt Roundtable and strengthen debt sustainability frameworks for low-income countries.
Acknowledging that “uncertainty is here to stay,” Georgieva concluded on an optimistic note:
“But with change comes opportunity. The IMF will continue to help countries seize these opportunities and provide tailored advice to navigate this evolving global landscape.”