Washington — The global economy, which has long been facing uncertainty and prospects of only moderate growth, is now performing better than previously expected, according to Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF). Speaking at a press conference in Washington on Wednesday, Georgieva said the world economy is showing resilience despite multiple global shocks.

“The global economy is doing ‘better than feared, but worse than desired,’” Georgieva remarked. She noted that while risks remain, policy adjustments, private sector adaptability, lower-than-expected tax pressures, and supportive financial conditions have all contributed to a relatively positive outcome.

According to her, the IMF now expects global economic growth to slow only slightly this year and next, supported by stronger-than-expected performance in the United States and several emerging and developing economies.

Georgieva’s comments come ahead of next week’s World Bank and IMF annual meetings in Washington, where finance ministers and central bank governors from around the world will gather. The issue of trade tensions is once again expected to dominate discussions, following former U.S. President Donald Trump’s decision to impose broad tariffs on multiple countries earlier this year.

“All indicators show that the global economy, though under pressure from several shocks, has demonstrated strong resilience,” Georgieva said. “A sound policy foundation, private sector adaptability, lower-than-expected tax rates, and supportive financial conditions have laid the groundwork for improving economic indicators.”

She added that the world has so far avoided falling into a full-blown trade war. Georgieva also highlighted that U.S. tax rates have fallen from 23% in April to around 17.5% now, though they still remain “significantly higher” than most other economies.

However, she cautioned that “the full effects of these tax measures have yet to unfold, and the resilience of the global economy has not been fully tested.”