"The global economy is holding up better than expected despite major shocks such as United States President Donald Trump's tariffs, but that resilience may not last, the head of the International Monetary Fund (IMF) says. Buckle up, Managing Director Kristalina Georgieva said in a speech at the Milken Institute think tank on Wednesday. Uncertainty is the new normal, and it is here to stay."
"The global economy is forecast to grow by 3 percent this year, and Georgieva is citing a number of factors for why it may not slip below that: Countries have put in place decisive economic policies, the private sector has adapted and the tariffs have proved less severe than originally feared. But before anyone heaves a big sigh of relief, please hear this: Global resilience has not yet been fully tested. And there are worrying signs the test may come."
"On Trump's tariffs, she said: The full effect is still to unfold. In the US, margin compression could give way to more price pass-through, raising inflation with implications for monetary policy and growth. The Republican US administration imposed import taxes on nearly all US trading partners in April, including Canada, Mexico, Brazil, China and even the tiny African nation of Lesotho."
The global economy is holding up better than expected despite major shocks such as US tariffs, but that resilience may not last. Uncertainty is the new normal and appears persistent. Gold reached $4,000 an ounce as investors sought safe havens amid a weaker dollar and geopolitical uncertainty. Global growth is forecast at about 3 percent this year. Countries have enacted decisive economic policies, the private sector has adapted, and tariffs have so far proved less severe than feared. However, global resilience has not yet been fully tested. Tariff effects remain to unfold, risking margin compression, price pass-through, higher inflation, and implications for monetary policy and growth.
Read at www.aljazeera.com
Unable to calculate read time
Collection
[
|
...
]