IMF Director Forecasts Stable Global Economy Amid U.S. Tariff Threats
Kristalina Georgieva emphasizes resilience of economies despite rising tariffs and national debts.
Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), stated that she does not foresee a recession on the horizon, despite growing concerns over tariffs imposed by United States President Donald Trump.
In an online event hosted by Reuters, Georgieva expressed that while the global economy might experience a slight downward correction, no drastic consequences are anticipated.
"We do not see a recession in the horizon.
We do not expect stagflation in the horizon," she remarked.
Stagflation is characterized by low economic growth accompanied by inflation rates above historical averages.
Georgieva highlighted concerns about the capacity of economies to absorb additional shocks, pointing to national debts that have escalated following the COVID-19 pandemic.
She noted that inflation is expected to remain stable, indicating that if inflation were to rise significantly, there could be a need for interest rate hikes.
Such increases could further strain national debt levels.
In a related context, President Trump has recently announced substantial increases in tariffs on products including steel and aluminum, signaling a possible new wave of tariffs that may take effect shortly.
These measures contribute to an ongoing discussion about economic policy and its implications for global trade dynamics.
As of March 31, 2025, the currency exchange rate indicates that the U.S. dollar is trading at 504.21 colones for sale and 497.07 colones for purchase, underscoring the current economic conditions in the region.
The IMF continues to monitor the global economic landscape amid these developments, emphasizing the importance of stability and resilience in national economies.
In an online event hosted by Reuters, Georgieva expressed that while the global economy might experience a slight downward correction, no drastic consequences are anticipated.
"We do not see a recession in the horizon.
We do not expect stagflation in the horizon," she remarked.
Stagflation is characterized by low economic growth accompanied by inflation rates above historical averages.
Georgieva highlighted concerns about the capacity of economies to absorb additional shocks, pointing to national debts that have escalated following the COVID-19 pandemic.
She noted that inflation is expected to remain stable, indicating that if inflation were to rise significantly, there could be a need for interest rate hikes.
Such increases could further strain national debt levels.
In a related context, President Trump has recently announced substantial increases in tariffs on products including steel and aluminum, signaling a possible new wave of tariffs that may take effect shortly.
These measures contribute to an ongoing discussion about economic policy and its implications for global trade dynamics.
As of March 31, 2025, the currency exchange rate indicates that the U.S. dollar is trading at 504.21 colones for sale and 497.07 colones for purchase, underscoring the current economic conditions in the region.
The IMF continues to monitor the global economic landscape amid these developments, emphasizing the importance of stability and resilience in national economies.
