IMF chief Georgieva: Greece among the top economies in the Eurozone

She made special mention of Greece’s Minister of National Economy and Finance, Kyriakos Pierrakakis, noting that his election as President of the Eurogroup confirms the country’s restored credibility and its strengthened role at the core of European developments.

Referring to the crisis of the previous decade and the difficult reforms that were implemented, Georgieva stressed that Greece’s progress is a clear example of how political will, consistency, and commitment to reform can lead to a strong recovery.

As she put it: “I would like to make special mention of countries such as Greece, Ireland, and Portugal. They went through a massive crisis—the Eurozone crisis. I am very grateful to our IMF teams for the work the Fund did with these countries. And look at them now: they are among the best-performing economies in Europe. How did they achieve this? You grit your teeth, you do the hard things, and you bring people along with you. The fact that today the President of the Eurogroup is the Greek Minister of Finance confirms this. Political will, commitment, and the ability to implement difficult reforms pay off.”

Turning point for the global economy

Speaking at the same event, Georgieva warned that the war in Iran will leave lasting marks on the global economy, even if a sustainable peace agreement is reached in the Middle East. She emphasized that the “scarring effects” of the conflict so far will result in slower global growth this year than previously expected.

She noted that, had the conflict not erupted six weeks ago, the IMF would have revised its 2026 global growth forecasts upward. “Now, however, even our most optimistic scenario includes a downgrade in growth projections. Even in the best-case scenario, there will not be a smooth and clean return to the status quo,” she said.

Georgieva added that there is heightened uncertainty about the depth of the global slowdown triggered by the war.

Nevertheless, all scenarios prepared for the IMF’s flagship World Economic Outlook report—due to be published on Tuesday—point to a lasting deterioration in living standards.

Last autumn, the IMF had projected global growth of 3.1% for 2026, slightly down from 3.2% in 2025, as a surge in investment driven by artificial intelligence contributed to the economy’s “unexpected resilience,” despite the tariff war launched by Donald Trump.

Georgieva said the global economy had entered the Iran conflict with “significant momentum,” supported by technology investments and favorable financial conditions. However, she explained that infrastructure damage, supply disruptions, loss of confidence, and other negative effects associated with the war will weigh on the global economy regardless of whether a peace agreement is reached.

Targeted measures

With many countries entering the crisis burdened by high debt levels and increased borrowing costs, the IMF chief urged governments to focus on targeted and temporary support measures for the most vulnerable households.

“All countries must use their limited fiscal resources responsibly, and most must act decisively to rebuild policy space after this shock. I cannot stress this enough,” she said.