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International Monetary Fund (IMF) Managing Director Kristalina Georgieva has said that despite stable global growth, the Indian economy is likely to remain ‘slightly weak’ in 2025. Georgieva said that she is likely to see a lot of uncertainty in the world this year, mainly regarding America’s trade policy. Global growth is likely to remain stagnant in 2025, he said at his annual media roundtable on Friday. But regional differences will be seen in this. Georgieva also expressed the fear that the Indian economy, which has been among the fastest growing major economies in the world in the last few years, may weaken slightly in 2025. However, he did not say anything more about this.
America is performing better
“The US is performing much better than we expected, the European Union (EU) is somewhat lagging and India is a bit weak,” he said. Along with this he said that Brazil is facing high inflation to some extent. Georgieva said that China, the world’s second largest economy, is facing pressure due to low inflation and ongoing challenges regarding domestic demand. “Low-income countries, despite all their efforts, are in a situation where any new shock could have a significant negative impact on them,” Georgieva said.
There will be a lot of uncertainty regarding economic policies in 2025
He said, “There is a possibility that there will be a lot of uncertainty in terms of economic policies in 2025. “Not surprisingly, given the size and role of the US economy, there is strong global interest in the incoming administration’s policy actions, particularly on tariffs, taxes, regulation and government efficiency.” Donald Trump has announced plans to impose additional tariffs on countries like China, Canada and Mexico. He will be sworn in as the 47th President of America on January 20. He has publicly announced his intention to use tariffs as a major policy tool.
The challenges facing the global economy will increase further
“The uncertainty is more about the trade policy path forward,” Georgieva said. This will further increase the challenges facing the global economy. “Particularly for countries and regions that are more integrated into global supply chains, medium-sized economies, and for Asia as a region.” The IMF Managing Director said that this uncertainty is actually expressed through higher long-term interest rates globally, even as short-term interest rates have decreased.
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