The chief of the International Monetary Fund stated on Thursday that even if US President Donald Trump’s tariff rollout has hurt GDP, the world economy is likely to avoid a recession.
The halt-start The majority of experts believe that the implementation of additional import taxes will, at least initially, impede economy and raise inflation. US tariff measures have also increased market volatility to levels not seen since the COVID-19 epidemic.
IMF Managing Director Kristalina Georgieva told reporters in Washington on Thursday that trade interruptions “incur costs,” and that the Fund now anticipates a notable reduction in growth but no recession.
About the current market volatility, she stated that people live in a world of “sudden and sweeping shifts.” It’s a call to act sensibly,” she continued. Her remarks before the Spring Meetings, which will be held in the US capital next week and are co-hosted by the World Bank and the IMF and will bring together world financial leaders.
According to her comments, the IMF will lower its earlier prediction that global growth would reach 3.3% in 2025 and 2026 in its next World Economic Report, which is scheduled for release on Tuesday. Due to their reliance on trade for growth, Georgieva predicted that the present tariff tensions will have three main effects on the global economy, with most developing countries and smaller advanced economies being more severely impacted.
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