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From 1d ago 16.14 CEST IMF: Trade tensions will lead to slower economic growth amid Trump tariffs Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), attends the 55th annual World Economic Forum (WEF) meeting in Davos, Switzerland, in January 2025. Photograph: Yves Herman/Reuters The International Monetary Fund (IMF) has said that it expects much slower global growth – but not a recession – because of trade tensions amid Donald Trump's tariff war.
Kristalina Georgieva, the IMF's managing director, said that the latest world economic outlook forecasts will include "notable markdowns, but not recession", in a speech in Washington before its annual meeting starting on Monday. The forecasts will be closely scrutinised for judgments of Trump's economic policy, after a fortnight of financial market chaos since his "liberation day" tariffs. Stock markets plunged after Trump raised tariffs on all goods imports, only to recover somewhat when he imposed a 90-day "pause" when turbulence spread to the bond market.
The deep uncertainty over Trump's plans have made it difficult for economists. However, unlike European Central Bank president Christine Lagarde, who refused to say how tariffs would affect inflation, Georgieva said that the IMF has raised inflation forecasts for some countries. Georgieva said economic "resilience is being tested again – by the reboot of the global trading system".
Trade tensions are like a pot that was bubbling for a long time and is now boiling over. To a large extent, what we see is the result of an erosion of trust – trust in the international system, and trust between countries. Share 1d ago 16.
14 CEST IMF: Trade tensions will lead to slower economic growth amid Trump tariffs View image in fullscreen Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), attends the 55th annual World Economic Forum (WEF) meeting in Davos, Switzerland, in January 2025. Photograph: Yves Herman/Reuters The..
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