BTA2023 The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, says sound economic policies are delivering tangible results for emerging market economies, even as global uncertainty intensifies.
Speaking at the 2026 AlUla Conference for Emerging Market Economies in AlUla, Saudi Arabia, Georgieva highlighted the growing resilience and rising global influence of emerging markets, while cautioning that vulnerabilities remain.
“Simply put: good policies pay off,” she said.
Emerging markets outpace advanced economies
According to Georgieva, emerging markets are expected to grow by around 4 percent in 2026, significantly outpacing advanced economies, which are projected to expand by about 1.5 percent.
She added that the economic weight of emerging markets continues to rise, with their share of global output having more than doubled since 2000 to over 56 percent.
The IMF chief attributed this performance to stronger policy frameworks, noting that many emerging economies now operate with more independent central banks, clearer inflation targets, and reduced reliance on foreign exchange interventions to absorb shocks.
On the fiscal front, she said an increasing number of countries are adopting formal fiscal rules to strengthen budget discipline and enhance credibility.
Caution amid rising global risks
Despite the progress, Georgieva warned that growth in emerging markets still lags pre-pandemic trends, raising concerns about their ability to withstand future shocks.
“This is doubly concerning,” she said, “as we will surely experience more shocks—but face them with depleted fiscal buffers, high spending pressures, and rising debt levels in many countries.”
She stressed that the next phase of global volatility could test the sustainability of recent gains if policy discipline weakens.
Two priorities for sustained growth
Georgieva outlined two key policy priorities for emerging economies seeking to sustain momentum.
First, she called for efforts to unleash private sector-led growth, including cutting red tape, deepening financial markets, strengthening institutions, improving governance, and equipping young people with skills for future jobs.
Second, she urged countries to step up economic integration, arguing that regional and cross-regional cooperation is becoming increasingly important as global trade patterns shift.
“In a world of shifting alliances and trade patterns, there are new opportunities for cooperation,” she said.
She pointed to initiatives such as the Gulf Cooperation Council (GCC), ASEAN, Mercosur, and the African Continental Free Trade Area (AfCFTA) as examples of how deeper integration can help preserve trade as a key engine of growth.
Emerging markets as global leaders
Georgieva also described the growing role of emerging economies as a source of global leadership, noting increased participation and deeper engagement at this year’s AlUla conference.
“In a more fragmented world, you come together to strengthen your ties,” she said, adding that dialogue among emerging markets is becoming critical for managing uncertainty in areas such as monetary policy, trade, and private-sector development.
Her message was clear: disciplined policies and stronger institutions have helped emerging markets outperform—but maintaining that edge will require continued reform, cooperation and resilience in the face of mounting global risks.
