“However, the IMF does not see the “dramatic influence” of the duties that have introduced and which Trump threatened”, – WRITE: www.radiosvoboda.org
The IMF is likely to reduce the economic forecast in its next updated review of the world economy in about three weeks, but “we do not see recession on the horizon,” Georgiev said in an interview with Reuters.
“What we see in high -frequency indicators indeed indicates that consumer trust and investors’ trust are weakening somewhat, and we know that it then turns into an impact on growth prospects,” she said.
However, the IMF does not see the “dramatic influence” of the duties that he introduced and threatened Trump after his return to the White House, she said.
In January, the IMF increased its grade of global economic growth by 2025 to 3.3% with 3.2%. However, now, according to her, Georgieva expects that in April, when the IMF will hold his spring meetings in Washington, the update of the Weos will be published to reflect a small correction.
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Georgiev noted that many countries have used their fiscal and monetary space during Covid and now have a high level of debt, which limits their ability to respond to future shocks. Any slowdown or reverse inflation can slow down the interest rates and complicate the refinancing of debts by countries.
The unpredictable rates of announcement and introduction of fees have ruined the attitude of investors, and the major US stock indices fell almost 10% since mid -February because of fears that duties would slow down or even provoke recession.
Georgiev said that world trade continues to grow, despite the surge of protectionist measures around the world, which have changed trade models and challenged globalization, and that trade in services is ahead of the increase in trade in goods.
Upon returning to the White House in January, Trump entered 20% of duties on all goods from China; threatened and then postponed 25% of duties on most goods from Canada and Mexico; Introduced high duties on imports of steel and aluminum;has declared 25% of duties on import cars; He announced that on April 2, he would be a “Liberation Day” when he plans to publish global mutual tariffs.
