IMF Managing Director Kristalina Georgieva has said the Indian economy is expected to be “slightly weaker” in 2025 despite steady global growth. Georgieva also said she expects there to be a lot of uncertainty in the world this year, primarily regarding US trade policy.
Global growth is expected to remain stable in 2025, but with regional divergence, he said at his annual media roundtable with a group of journalists on Friday.
Georgieva said she expects the Indian economy to weaken slightly in 2025. However, he did not say anything else about it. There will be more information on this in the World Economy Outlook Update this week.
“The US is doing much better than we previously expected, the EU is somewhat lagging, (and) India is a little weak,” he said.
Brazil is experiencing somewhat higher inflation, he said.
In China, the world’s second-largest economy, the International Monetary Fund (IMF) is looking at deflationary pressures and ongoing challenges with domestic demand, he said.
“Low-income countries, despite all efforts, are in a situation where any new shock could have a significant negative impact on them,” Georgieva said.
“What we expect in 2025 is a lot of uncertainty, especially in terms of economic policies. Not surprisingly, given the size and role of the US economy, there is strong interest globally in the policy directions of the incoming administration, particularly on tariffs, taxes, deregulation and government efficiency,” Georgieva said.
“This uncertainty is particularly high around the path of trade policy going forward, which is increasing the headwinds facing the global economy, particularly for countries and regions that are at the core of global supply chains, medium-sized economies and (And) Asia is more integrated as a region. ,” He said.
The IMF managing director said this uncertainty has indeed been expressed through higher long-term interest rates globally, even as short-term interest rates have declined.
Donald Trump will be sworn in as the 47th President of the United States on January 20, replacing Joe Biden at the White House.
78-year-old Trump has announced plans to impose additional tariffs on countries like China, Canada and Mexico. He has publicly announced the use of tariffs as a major policy tool.
Georgieva said that on inflation, the IMF expects global deflation to continue.
“As we all believed, the higher interest rates needed to fight inflation did not push the world economy into recession. They have delivered the desired results. Headline inflation is returning to target sooner in advanced economies than in emerging markets ,” he said. Said.
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