Editor-DN
Washington:
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 that she expects a lot of uncertainty in the world this year, especially with regard to US trade policy.
At his annual media roundtable with a group of journalists on Friday, he said global growth is expected in 2025, but with regional differences.
Georgieva said she expects the Indian economy to weaken slightly in 2025. However, he did not elaborate on this further. There will be more details on this in the World Economic Outlook Update next week.
“The U.S. is already doing a little better than we expected, the European Union is holding back a little, (and) India is a little weaker,” he said.
He said that Brazil was experiencing slightly high inflation.
In China, the world’s second-largest economy, the International Monetary Fund (IMF) is looking at ongoing challenges with inflationary pressures and domestic demand, he said.
“Low-income countries, despite all the efforts they are making, are in a position where any new shock could have a significant negative impact on them,” Georgieva said.
“What we expect in 2025 is that there will be considerable uncertainty, particularly in terms of economic policies. Not surprisingly, given the size and character of the US economy, the incoming administration’s policy directions, There is particularly strong global interest in tariffs, taxes, deregulation and government efficiency,” Georgieva said.
“This uncertainty is particularly high around the path forward for trade policy, adding to the challenges facing the global economy, particularly for countries and regions with global supply chains, medium economies, (and) are more integrated in Asia as a region,” he said.
The IMF’s managing director said that this uncertainty is indeed reflected in high 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.
Trump, 78, has announced plans to impose additional tariffs on countries such as China, Canada and Mexico. It has publicly announced the use of tariffs as a key policy tool.
On inflation, the IMF expects the global recession to continue, Georgieva said.
“As we all recognize, the high interest rates that were necessary to fight inflation did not push the global economy into recession. They delivered the desired results. Inflation in advanced economies compared to emerging markets. rate is returning to target soon.” said.
(Other than the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
