IMF: The global economy is better than expected, but the situation is worse than needed

At the G20 summit in South Africa, IMF Managing Director Kristalina Georgieva stated that the global economy is performing "better than we feared, but worse than we need to."

The IMF chief explained that the global economy has demonstrated resilience in the face of "multiple shocks, trade tensions, and heightened uncertainty," but emphasized that the situation remains below what is needed.

She added that growth is severely low—below pre-pandemic levels—while debt is rising to exceptional levels, suffocating many countries, particularly the poorest.

She noted that geopolitical tensions, climate conditions, and "technological and demographic shifts" are exacerbating global uncertainty.

She also affirmed that the development of artificial intelligence technologies could help "reverse" the slowdown in productivity, explaining: "According to our assessments, artificial intelligence could deliver nearly 1% more economic growth… and that's a remarkable figure."