The world economy has held up better than expected. The most catastrophic scenarios, which pointed to a recession throughout the world, have not materialized.

IMF economists are preparing to raise their growth forecasts. “We have avoided a global recession and a period of stagflation, as some had predicted,” says Kristalina Georgieva, managing director of the Fund. The IMF director calls for taking advantage of the future prospects of a soft landing and strong labor markets to act on fiscal consolidation and creating new debt buffers to reach sustainable levels. But she is aware of the other side of the coin: “On the other hand, an excessive delay could pour cold water on new economic prospects, reaching sustainable levels, creating new fiscal buffers and reaching new levels of debt consolidation,’ she says. The global environment has become more difficult. Geopolitical tensions increase the risks of fragmentation of the global economy. And, as we have learned in recent years, we operate in a world where we must expect the unexpected.