Covid crisis not as bad as initially thought, Kristalina Georgieva says

IMF Managing Director Kristalina Georgieva.

Samuel Corum | Getty Images

LONDON — The economic crisis of 2020 may not have been as bad as the International Monetary Fund originally thought, but the path ahead will be a “difficult climb,” Kristalina Georgieva, the Fund’s managing director, said Tuesday.

The IMF projected in June a contraction of 4.9% in global GDP (gross domestic product) this year. However, the global economy has ended up performing better than the Fund’s expectations in the second and third quarters. This is expected to lead to “a small upward revision” to its growth forecasts which are due to be presented next week.

“The picture today is less dire. We now estimate that developments in the second and third quarters were somewhat better than expected,” Georgieva, who took the helm of the IMF a year ago, said during a speech in Washington, D.C.

She explained that the better-than-expected

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