While trade disruptions will inevitably "incur costs," the Fund now expects "notable" markdowns to growth but no recession, IMF Managing Director Kristalina Georgieva said.
Washington:The global economy is likely to avoid a recession despite the hit to growth from US President Donald Trump's tariff rollout, the head of the International Monetary Fund said Thursday.
The stop-start US tariff plans have fueled levels of market volatility unseen since the Covid-19 pandemic, and most economists expect the imposition of new import levies will stifle growth and push up inflation, at least in the short term.
Trade disruptions "incur costs," IMF Managing Director Kristalina Georgieva told reporters in Washington on Thursday according to prepared remarks, adding that the Fund now expects "notable" markdowns to growth but no recession.
"This is a reminder that we live in a world of sudden and sweeping shifts," she said of the recent market volatility during her speech, which came ahead of next week's Spring Meetings -- a gathering of global financial leaders co-hosted by the IMF and the World Bank in the US capital.
"And it is a call to respond wisely," she added.
Her comments suggest the IMF will use its upcoming World Economic Report, published Tuesday, to pare back its previous forecast for global growth to hit 3.3 percent in 2025 and 2026.
0 Comments