IMF Managing Director: "Negative Impact on Growth... Tariff Uncertainty Must Be Resolved"

Signs of Weakening Consumer and Investor Confidence
Global Economic Outlook Update Scheduled for End of This Month

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), stated that the uncertainty caused by U.S. President Donald Trump's tariff threats poses a risk of damaging global economic activity and emphasized the need to resolve tariff uncertainties.

According to Bloomberg News, Georgieva said in an interview with Reuters on the 31st of last month (local time), "The sooner it becomes clear, the better," adding, "Our research shows that the longer uncertainty persists, the more negative impact it can have on growth."

Georgieva pointed out in recent data that there are signs of weakening consumer and investor confidence, and that tariffs could affect growth prospects.

She also noted that although there has not yet been a dramatic impact from the tariffs and threats implemented since President Trump's inauguration, it may be enough to slightly downgrade the IMF's global economic growth forecast, which was predicted at 3.3% in January this year.

The IMF is scheduled to release an update on the global economic outlook at the end of this month.

Earlier last week, the IMF forecasted that while aggressive tariff policies pursued by President Trump would lead the U.S. economy into a low-growth phase this year, it does not expect a recession.

Georgieva also stated that due to fiscal pressures following the COVID-19 pandemic and Russia's invasion of Ukraine, many countries lack the capacity to absorb additional shocks in the future.