International Monetary Fund (IMF) Managing Director Kristalina Georgieva says that despite stable global growth, the Indian economy may remain slightly weak this year. He also stressed that he expects a lot of uncertainty in the world this year, especially regarding America’s trade policy.
Global growth expected to remain stable
Global growth is expected to remain stable in 2025, but there will be regional variations, Georgieva said at her annual media meeting with a group of journalists on Friday. He said he expects the Indian economy to weaken slightly in 2025, although he did not elaborate.
Growth slows down in EU
He said, ‘The US economy is performing better than expected, while growth in the European Union is slowing down. Inflation is decreasing in China and domestic demand is also low. Brazil is facing inflation and may create new economic problems for low-income countries. At the same time, India has also become a little weak. We expect there will be a lot of uncertainty in 2025, especially regarding US trade 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, regulation and government efficiency.’
“This uncertainty is particularly high regarding the path of trade policy going forward, further exacerbating the challenges facing the global economy, particularly for countries and regions that are at the core of global supply chains, medium-sized Economies and Asia as a region are more integrated.’
The Managing Director of the IMF said that this uncertainty is actually expressed through higher long-term interest rates globally, even as short-term interest rates have decreased.
Trump will take oath on 20th
Donald Trump will be sworn in as the 47th President of the United States on January 20, replacing Joe Biden at the White House. 79-year-old Trump has announced plans to impose additional tariffs on countries like China, Canada and Mexico. He has publicly declared his intention to use tariffs as a major policy tool.
Georgieva said that in terms of inflation, the IMF expects global deflation to continue. As we all know, the higher interest rates needed to fight inflation did not push the world economy into recession. They have given the desired results. He said core inflation is reaching target sooner in advanced economies than in emerging markets.
