The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, said that President Donald Trump’s offensive to impose generalized tariffs is creating great uncertainty and affecting confidence, but it is not likely to trigger a short -term recession.
“We are not seeing a dramatic impact” still of the tariffs implemented and threatened so far by Trump from his return to the White House, Georgieva said in an interview with Reuters Next Newsmer.
It is likely that the IMF will reduce the economic projections in its next update of the world economic perspectives in about three weeks, but “we do not see a recession on the horizon.”
In January, the IMF slightly raised its world economic growth estimate by 2025 to 3.3%, from 3.2% of its previous estimate of October. Most of this rebound is explained by an improvement of half a percentage point to 2.7% in the perspectives of the United States.
Now, Georgieva hopes that the Weo report update, scheduled for April, when the IMF celebrates its boreal spring meetings in Washington, reflects a small “correction” downward with these estimates, he said.
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From his return to the White House in January, Trump imposed tariffs of 20% to all products sent from China; He threatened and then delayed the application of 25% encumbrances to most goods from Canada and Mexico; It imposed rates on steel and aluminum imports; and announced 25% rates to car imports.
In addition, he said that April 2 will be the “Day of Liberation”, when he plans to reveal global reciprocal tariffs.
The unpredictable rhythm of the ads and the implementation of tariffs has deteriorated the attitude of investors, and the main US stock market rates have fallen almost 10% since mid -February due to the concern that taxes are slowing down or even cause a recession.
The more uncertainty persists on Trump’s approach in tariff policy, the greater the risk for perspectives, Georgieva said.
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“The sooner there is more clarity, the better, because according to our research, the longer uncertainty is prolonged, the greater the negative impact that it may have on growth,” he concluded.
With Reuters information
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