Kristalina Georgieva, Managing Director of the IMF, issued a stark warning that economic instability may become a sustained state of affairs.
While global growth is projected at 3% for 2025, she cautioned that markets may be hiding deeper vulnerabilities. Key risks include elevated U.S. deficits, overvaluation in asset prices, rising gold as a safe haven, and geopolitical tension.
Georgieva urged major economies to enact careful policies: the U.S. should address its fiscal trajectory, China should stimulate domestic demand, and Europe should strengthen integration through a unified economic “tsar.”
She also flagged social unrest among younger populations—seen across cities from Lima to Jakarta—as a political risk with economic implications. In an era of rapid change, she said, bold but measured policy choices will be essential to avoid cascading crises.
