IMF raises its global economic outlook

IMF Managing Director Kristalina Georgieva said on Tuesday that decisions by most countries not to retaliate against ￰0￱ Donald Trump’s tariffs have partly helped bolster the global economy’s ￰1￱ made the remarks at the latest World Economic Outlook event, held during the IMF and World Bank annual meetings in ￰2￱ noted that the world has so far opted not to retaliate and to continue trading under the rules that have existed in global ￰3￱ argued that the initiative avoided debilitating tariff ￰4￱ raises its global economic outlook The IMF on Tuesday elevated its 2025 global GDP growth forecast in its World Economic Outlook from 3% to 3.2%. It also cautioned that the potential resumption of the U.

S.-China trade war, threatened by Trump over the weekend, could significantly slow ￰5￱ told the Bretton Woods Committee event that the effective drop of ￰6￱ rates from prior estimates has also supported global ￰7￱ acknowledged that the analyst’s estimates that Trump’s levies announced in April would average 23% were reduced by ￰8￱ deals with the European Union, Japan, and other major partners to about 17.5%. “The effective tariff, though, what is being collected when you get exceptions to accommodate the need for the economy to function well, we calculate them somewhere between 9% and 10% so the burden is more than twice less than we thought it would be.” -Kristalina Georgieva, Managing Director of the International Monetary ￰9￱ senior IMF executive noted that other factors fueling the global economy have included better policies by countries to boost private sector development and a more efficient allocation of ￰10￱ added that the agility of companies in mitigating the worst impact of trade policies, by front-loading imports and quickly rearranging supply chains, also propped up the global ￰11￱ also argued that the stretched valuations could test the resilience of countries in global ￰12￱ noted that the tech sector valuations have been inflated, which has fueled a stellar market rally this ￰13￱ IMF managing director said the stretched valuations are a big bet, as if they pay back, it will eliminate concerns about low economic ￰14￱ believes the world will experience an increase in productivity and ￰15￱ economist compares surge in AI investment to the dot-com crash IMF Chief Economist Pierre-Olivier Gourinchas mentioned earlier that the surge in AI investments could lead to a bust similar to the dot-com crash in 2000, which burns equity ￰16￱ argued that it would not likely result in a systemic crisis because it has not been heavily funded by ￰17￱ economist said the risk of surging valuations will require tighter monetary policy to contain price ￰18￱ to him, the disadvantages of the AI boom are that markets could reprice sharply, which would reduce wealth, consumption, and investment, lower activity, and expand to broader financial ￰19￱ said the increased projection on growth and the modest rise in inflation are proving more persistent amid Trump’s heightened trade policies this ￰20￱ attributed the economic growth to the tariff impact being smaller than initially feared, due to numerous trade deals and ￰21￱ also echoed Georgieva’s remarks, stating that most countries kept the trading system open by refraining from tariff ￰22￱ also noted that financial conditions remained loose, partly because of a weaker ￰23￱ to his assessment, countries such as Germany and China saw their fiscal policy turn expansionary, while in the U.

S., AI- and tech-driven investment is ￰24￱ economist mentioned that there are continued concerns about China’s growth model, where its growth in recent years has come from ￰25￱ argued that it is increasingly difficult for the country to sustain growth since the economy remains close to a debt-deflationary ￰26￱ your strategy with mentorship + daily ideas - 30 days free access to our trading program