The Managing Director of the International Monetary Fund, IMF, Kristalina Georgieva, on Tuesday said it is too early to assess the impact of the US tariffs on the world economy, describing the tariffs as an evolving story.
Georgieva made this statement while speaking at the World Government Summit in Dubai.
“It is an evolving story… What we have are elements of trade policy that we expected would come, that were announced in the election campaign, but there are many, many unknowns.
“So when I think of the impact on the world economy, my answer to you would be today, it’s too early to say,” she said.
According to her, the world economy appeared remarkably resilient, despite a series of unprecedented shocks, suggesting that the outlook for inflation was hard to predict.
“Even on that, we just need to see how things evolve. Because if we are in the situation in which, in some parts of the world, there is a slowdown that may push central banks to bring interest rates down, that may actually not be inflationary,” she added.
Media Talk Africa recalls that the US President Donald Trump, substantially raised tariffs on steel and aluminum imports on Monday to a flat 25%, a move he hopes will aid the struggling industries in the United States.
