Amman, Oct. 8 (Petra)** – International Monetary Fund (IMF) Managing Director Kristalina Georgieva said Wednesday that the global economy is “in better shape than feared,” though that alone is not enough.

In her keynote address ahead of next week’s IMF and World Bank Annual Meetings, Georgieva said the world economy has “largely withstood severe tensions.”

According to Agence France-Presse (AFP), she noted that despite its resilience to recent disruptions, warning signals are emerging including “rising global demand for gold” and the risk of renewed inflation due to trade tariffs. She voiced concern that “financial market confidence could suddenly turn,” potentially depriving companies of essential financing.

Georgieva also cautioned against the risk of a “sharp correction” in stock market valuations of companies involved in artificial intelligence, whose capitalization “appears to be reaching levels unseen in 25 years,” reminiscent of the dot-com bubble.

She urged countries to “get their houses in order,” particularly by restoring fiscal buffers to better withstand future shocks and by addressing “excessive imbalances,” such as over-consumption in the United States and excessively high investment in China.

Georgieva warned that failure to do so could lead to “higher interest rates and mounting borrowing costs,” which would strain public spending and weaken governments’ ability to respond to crises.

//Petra// AF
08/10/2025 22:17:43