The International Monetary Fund (IMF) may revise down its forecast for global economic growth in April due to US tariffs, but there is no threat of recession.
This was stated by IMF Managing Director Kristalina Georgieva in an online interview with Reuters.
She was asked to comment on the US tariffs. “Consumer and investor confidence is weakening somewhat and we know that this will have an impact on the global growth outlook later. I would say this: we will know more when we are able to analyze all the available data. We will publish our report on the global economic outlook in three weeks. We don't see a dramatic impact from the US tariffs and their consequences, if anything, it will be a small downward adjustment, but we don't see a recession on the horizon, we don't see stagflation," she noted.
According to the head of the fund, the US tariffs create great uncertainty and undermine confidence. At the same time, she stressed that the longer the uncertainty continues, the more it will affect global economic growth.
Georgieva stressed the need to remove barriers to entrepreneurship and economic growth. She added that problems with global growth make it difficult for indebted developing countries to repay their debts soon.