The president 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 probably not going to enter a recession. The halt-start The majority of analysts believe that the implementation of additional import taxes will, at least initially, impede growth and raise inflation. US tariff measures have driven market volatility at levels not seen since the Covid-19 outbreak.
IMF Managing Director Kristalina Georgieva told reporters in Washington on Thursday that trade interruptions “incur costs,” according to prepared remarks. She also stated that the Fund now anticipates “notable” markdowns to GDP but no recession. She remarked of the recent market volatility, “This is a reminder that we live in a world of sudden and sweeping shifts,” on the eve of the Spring Meetings, a conference of international financial leaders that the IMF and World Bank are co-hosting in the US capital next week.
She went on to say, “And it is a call to respond wisely,” According to her remarks, 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 released 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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