IMF Managing Director Georgieva warns world unprepared for frequent economic shocks

IMF Managing Director Kristalina Georgieva delivered a keynote ahead of the IMF/World Bank Spring Meetings in Washington, DC, and warned that governments, businesses and international institutions must prepare for a future defined by increasingly frequent economic shocks. She cited the COVID‑19 pandemic, the war in Ukraine, trade tensions and the latest conflict in the Middle East as examples, noting that the world has not yet internalised this new normal. Georgieva called for stronger economic resilience, objective analysis and attention to the social costs of globalization, especially as artificial intelligence spreads and reshapes labour markets.

The IMF, with a lending capacity of just under $1 trillion and 191 member countries, will update its World Economic Outlook in July after revising its forecast in April due to the Middle‑East conflict. The fund projects global growth of 3.1% in 2026 and 3.2% in 2027 under a reference scenario, with higher inflation and lower growth in adverse energy‑price scenarios that could push growth near recession levels. Emerging and developing economies that rely on energy imports face the greatest pressure.

The IMF also announced it will resume its annual Article‑IV review of the Russian economy for the first time since the invasion of Ukraine, while continuing to support Ukraine with $15.6 billion in 2023 and $8.1 billion in 2024 tied to reforms.