IMF chief sees steady world growth in 2025, continuing disinflation
FILE PHOTO: IMF Managing Director Kristalina Georgieva holds a press briefing during the International Monetary Fund (IMF) and the World Bank Group 2024 Fall Meeting in Washington, U.S., October 24, 2024. REUTERS/Kaylee Greenlee Beal/File Photo
WASHINGTON : The International Monetary Fund will forecast steady global growth and continuing disinflation when it releases its World Economic Outlook on Jan. 17, IMF Managing Director Kristalina Georgieva told reporters on Friday.
Georgieva said the U.S. economy was doing "quite a bit better" than expected, although there was high uncertainty around the trade policies of the administration of President-elect Donald Trump that was adding to headwinds facing the global economy and driving long-term interest rates higher.
With inflation moving closer to the U.S. Federal Reserve's target, and data showing a stable labor market, the Fed could afford to wait for more data before undertaking further interest rate cuts, she said. Overall, interest rates were expected to stay "somewhat higher for quite some time," she said.
