DUBAI
It is “too early to say” how recent US tariffs will affect the global economy as Washington gradually rolls out its trade policies and the response of businesses and consumers remains uncertain, the International Monetary Fund’s (IMF) managing director said Tuesday.
Speaking at the World Government Summit in Dubai, Kristalina Georgieva emphasized that assesing the tariffs’ impact depends heavily on the inflation outlook, noting that countries experiencing economic slowdowns may need to reduce interest rates.
Speaking at the World Government Summit in Dubai, Kristalina Georgieva highlighted that to assess the impact of the tariffs requires the inflation outlook to be determined, as some countries dealing with an economic slowdown may be pushed to lower their interest rates.
the inflation outlook needs to be determined to assess the effect of US tariffs, as some countries dealing with an economic slowdown may be pushed to lower their interest rates.
The reactions of countries contribute to the unknown factors, making it difficult to deduce the impact, she said.
Georgieva noted that the US economy outperformed other G20 countries and there has been more capital inflow to America versus the pre-pandemic period.
She noted that the US’ performance allowed the dollar to be strong, though a strong dollar poses obstacles to most emerging and developing markets.
She added that the global economy has performed well despite the shocks, with the IMF expecting a global economic growth of 3.3% in 2025
