Kathmandu: The International Monetary Fund (IMF) Managing Director Kristalina Georgieva has said the global economy is performing better than anticipated, even amid persistent uncertainty and moderate growth prospects.

“Better Than Feared, But Worse Than Needed”

Speaking at a news conference in Washington on Wednesday, Georgieva remarked that the global economy is “doing better than feared, but worse than we needed.”
She noted that global growth is expected to slow only slightly this year and next, supported by stronger-than-expected performance in the United States and several advanced, emerging, and developing economies.

Key Drivers of Economic Stability

According to Georgieva, the positive outlook is underpinned by improved policy frameworks, private sector resilience, lower-than-expected taxes, and supportive financial conditions. These factors, she said, have contributed to keeping the global economy on a relatively stable footing.

Trade Tensions Remain a Risk

Her remarks came ahead of the IMF and World Bank Annual Meetings, where trade tensions are expected to be a key topic.
While acknowledging that the world has so far avoided a full-blown trade war, Georgieva warned that risks persist, particularly if protectionist measures intensify.

U.S. Tax Rate and Global Impact

Georgieva also pointed out that the U.S. tax rate has declined from 23 percent in April to 17.5 percent, though it still remains “significantly higher” than in most other countries.
She emphasized that the full impact of these tax changes has yet to be seen, adding that the resilience of the global economy is still being tested.