Kristalina Georgieva: IMF will lower its forecasts but recession is not foreseen
| Georgieva pointed out that the countries’ economies have been tested because of the restart of the global commercial system caused in recent months by the new American duties and responding by China and the European Union. This has unleashed an « unprecedented » uncertainty in commercial policy and extreme uncertainty in the financial markets, Georgieva said. |
Big changes lead to costs … Our new growth forecasts will decrease, but it’s not a recession.
Kristalina Georgievamanaging director of the International Monetary Fund
This was said by Georgieva in a prepared statement. According to her, higher inflation values for some countries will also be included in the forecast.
IMF: World trade tensions can cause shares collapse
Increased insecurity also increases the risk of stress in financial markets, Georgieva said. Recent movements in the profitability of US government bonds should be considered a warning. « Everyone suffers if the financial conditions get worse, » she said.
| The International Monetary Fund forecasted global economic growth of 3.3% in 2025 and 3.3% for 2026. The updated « world economic perspective » will be published on Tuesday. |
Georgieva made a statement at the IMF headquarters in Washington before the Fund and World Bank’s spring meetings next week. She did not give details of the expected adjustments, but warned that prolonged insecurity would be expensive.
World Trade Growth Prognosis has gone from solid growth to decline
« While the giants collide, the smaller sides are under the cross fire, » Georgieva said. China, the EU and the US are the three largest importers in the world, which means serious consequences for smaller economies that are more vulnerable to financial tightening, Georgieva added.
