October 17, 2025
Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), addressed global economic challenges and resilience during a speech delivered to IMF members and partners. She acknowledged the shifting landscape of international trade, demographic divides, and the effects of technological advances such as artificial intelligence.
Georgieva noted, "From technology to geopolitics to climate to trade, change is unsettling. The world trading system that delivered so much for so many is being shaken to its core—for many reasons, including because the playing field wasn’t truly level and the people left behind received too little help in retooling for new and better jobs."
She highlighted that despite rising uncertainty since October 2024, most countries have refrained from retaliatory tariff actions: "And, of course, we have U.S. tariff rates shooting up this year. But here is a key fact: 188 of our 191 member countries have so far avoided tit-for-tat tariff actions." Georgieva welcomed this restraint while acknowledging ongoing changes in global trade policy.
According to Georgieva, about 72 percent of world trade still operates under most-favored-nation terms. She emphasized that maintaining diversified supply chains and supporting those impacted by shifts in trade are essential for enhancing welfare.
Turning to resilience in the global economy, she said that projected world growth would slow from 3.3 percent last year to 3.2 percent in 2025 and further to 3.1 percent in 2026—slower than desired but not a dramatic decline.
She attributed this resilience partly to adaptability within the private sector: "One reason for this resilience has been private sector adaptability, as seen in the import frontloading, the stockbuilding, and the supply-chain strengthening." Another factor has been increased investment in artificial intelligence (AI), particularly in the United States.
However, Georgieva cautioned against complacency regarding AI's potential: "This is where optimism—in this case about the genuine potential of AI—risks becoming complacency." She called for strong financial oversight and careful monetary policy to manage risks associated with rapid technological change.
The IMF’s surveillance activities were also highlighted as tools for providing guidance during uncertain times. "This and other cross-cutting advice punctuate our multilateral surveillance, where our World Economic Outlook, Global Financial Stability Report, and Fiscal Monitor—all released this week—shine light, lower the temperature, and propose a path forward," Georgieva said.
Looking ahead, she outlined three objectives for boosting medium-term growth: regulatory reform to encourage private enterprise; deeper regional integration; and preparedness for AI adoption. The IMF plans to support all member countries in managing macroeconomic impacts related to AI advancement.
Internally, Georgieva explained how the IMF is integrating AI into its own operations while maintaining fiscal discipline: "Despite the increasing complexity of the world economy and the expansion of the services we provide to our members, our administrative spending today is about the same size as 20 years ago."
She also provided an update on IMF capacity development efforts—including nearly 3,000 projects delivered over one year—and lending activities totaling $37 billion approved since last October across programs with 43 countries.
Georgieva appealed for renewed support for the Catastrophe Containment and Relief Trust (CCRT), which provides grants to low-income nations facing disasters but was depleted during recent crises. "Our ambition must be to remain able to assist our poorest members when they face situations beyond their control," she stated.
The address concluded with a call for optimism despite uncertainty: "Despite all the anxiety that change brings, let us be optimistic! Let us feel our spirits lifted by the human progress that the coming year will surely bring!"