"Buckle up: uncertainty is the new normal. As finance ministers and central bankers prepare to meet in Washington for the IMF's annual meetings next week, its managing director, Kristalina Georgieva said the world economy had shown surprising resilience in the face of Donald Trump's trade war. The US is now expected to avoid recession, despite the imposition of historic tariffs on many of its trading partners, and the global economy is forecast to slow only slightly this year and next, she said."
"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, she told an audience at the Milken Institute in Washington. Georgieva suggested the full economic impact of US tariffs is yet to unfold, after many firms front loaded exports earlier this year to dodge the levies."
Global economy has shown resilience despite a US trade war and historic tariffs, with the US expected to avoid recession and global GDP growth forecast near 3% this year. Record gold prices topped $4,000 an ounce, signalling investor anxiety, while US stock valuations reached exceptionally high levels, driven by a small group of technology firms. Many firms front loaded exports earlier in the year to dodge tariffs, suggesting the full economic impact of tariffs may still emerge. Financial markets have broadly remained calm, but that calm masks softening trends and sentiment can turn abruptly. IMF projections will be updated at upcoming meetings.
Read at www.theguardian.com
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