According to Kristalina Georgieva, the Indian economy is predicted to decrease in 2025 comparatively while the global economy expands further. Kristalina also elaborated stating the turning point would be the US trade policies that would cause quite a stir throughout the year on a global scale.

As per her depiction of the media round during the reporters assessment, she stated that the global economy will experience a steady growth but with variance across the regions. Indian economy has recently had its upturn but, as per Kristalina, it would take a further dip in the coming year, however, she remained ambiguous about her prediction. More updates regarding the event are bound to come out in the World Economy Outlook.

Kristalina also stated that US’s progress surpassed their expectations, yet the EU still remains stagnant as well as India that is weakening. She also talked about the economic atmosphere in both Brazil and China in which Brazil was undergoing greater inflation while the IMF in China noticed the urge for economic growth was absent.

Georgieva claimed that ‘all efforts’ would result to nothing in low-income nations due to the already negative shocks caused.

“2025 is likely to be full of uncertainty, particularly concerning economic policy, as we have predicted. There is also considerable focus on economic policy direction in the US due to its importance to the global economy, be it trade tariffs, taxes, deregulation or the efficient functioning of the government, and so this isn’t surprising,” Georgieva explained.

“A substantial amount of this uncertainty is emerging about the future direction of trade policy, which only adds to the issues the world economy is having, especially for regions and countries which are more reliant on global supply chains, medium sized economies, and for Asia in general.” For this reason, she explained,

As a matter of fact, he added, this uncertainty is indeed manifested globally in higher long-term interest rates, even if short-term interest rates have declined. On January 20, 2023, Former President of the United States Joe Biden’s term will end, and Donald trump will be inaugurated.

President Donald trump has stated, that this policy will also help the US put tariffs on China, Canada and Mexico which, countries he has targeted. President Trump has reaffirmed the position of the United States that the use of tariffs is a key policy instrument. Georgieva stated that “the Fund expects the moderate trend of global disinflation to be maintained.”

According to her, “As we know, the interest rates which had to be increased in order to avert inflation did not leave the global economy crashing into a recession. The results have been encouraging. Target inflation is rapidly moving back to normal in advanced countries than in developing countries.”