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The IMF head states that the effects of US tariffs on the global economy remain unclear at this stage.
IMF’s Managing Director, Kristalina Georgieva
US tariffs remain an “evolving story,” and it is too soon to determine their impact on the global economy, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Tuesday.
Speaking at the World Government Summit in Dubai, Georgieva noted that the tariffs were expected, as they had been announced during the election campaign, but acknowledged significant uncertainties.
“It is an evolving story… but there are many, many unknowns,” she said. “So when I think of the impact on the world economy, my answer to you would be today, it’s too early to say.”
Despite a series of unprecedented shocks, Georgieva said the global economy had shown remarkable resilience. She also highlighted the unpredictability of inflation trends.
“Even on that, we just need to see how things evolve. Because if we are in the situation in which, in some parts of the world, there is a slowdown that may push central banks to bring interest rates down, that may actually not be inflationary,” she explained.
Her comments came a day after US President Donald Trump announced a sharp increase in tariffs on steel and aluminium imports, raising them to a flat 25%. The move aims to support struggling domestic industries but has also heightened fears of a multi-front trade war.
Faridah AbdulkadiriReply
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