International Monetary Fund managing director Kristalina Georgieva on Thursday said the global economy is expected to avoid a recession this year, despite elevated uncertainty surrounding tariffs.
Her remarks come ahead of next week's IMF and World Bank Spring meetings, where President Donald Trump's tariff regime is likely to dominate the agenda, including its updated World Economic Outlook.
“In it, our new growth projections will include notable markdowns, but not recession,” Ms Georgieva said at the fund's headquarters in Washington.
The IMF is also expected to raise its inflation forecast for some countries because of tariffs. The IMF in January projected global growth of 3.3 per cent this year and in 2026.
Mr Trump has spent his first few months in office implementing − and sometimes reversing − a series of tariffs against America's trade partners. That has led to private-sector economists revising their economic forecasts to lower growth and higher inflation.
Although Mr Trump has pared back tariffs on most countries, he has intensified his trade war with China. Washington has hit China with tariffs totalling up to 145 per cent, while Beijing has responded with duties of 125 per cent.
“We would like to see reduction in uncertainty, and it's hard to get there if the two largest economies are still fighting,” said Ms Georgieva.
Uncertainty has shaken global markets, with Wall Street leading a steep sell-off. Meanwhile, the yield on the 10-year Treasury has spiked while the dollar has depreciated.
“Such movements should be taken as a warning,” she said, arguing that greater clarity would allow for business and consumers to plan.
The IMF chief also warned against a “drift to division” and that shifting trade policies are testing economies' resilience to large shocks.
“This is a reminder that we live in a world of sudden and sweeping shifts,” said Ms Georgieva.
Still, she said trade tensions have been bubbling over for a long time, leading to an erosion of trust between countries.
“Trade distortions … have fed negative perceptions of a multilateral system seen to have failed to deliver a level playing field,” she said.
Smaller advanced economies and emerging markets will be the most exposed to tariffs, she said, while lower-income countries will face the additional challenge of less aid.
The IMF chief urged countries to use the new shift in trade to establish a better balanced and more resilient world economy”.
For the US, she said this means to lower federal debt. Meanwhile, she urged China to boost low private consumption and for Europe to improve competitiveness by deepening the single market.
“Reforms and rebalancing are for everyone,” said Ms Georgieva, referring to the GCC, Africa and Asia.
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18 under: Tyrrell Hatton (ENG)
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How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
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COMPANY PROFILE
Name: Lamsa
Founder: Badr Ward
Launched: 2014
Employees: 60
Based: Abu Dhabi
Sector: EdTech
Funding to date: $15 million
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Scoreline:
Manchester City 1
Jesus 4'
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THE BIO
Family: I have three siblings, one older brother (age 25) and two younger sisters, 20 and 13
Favourite book: Asking for my favourite book has to be one of the hardest questions. However a current favourite would be Sidewalk by Mitchell Duneier
Favourite place to travel to: Any walkable city. I also love nature and wildlife
What do you love eating or cooking: I’m constantly in the kitchen. Ever since I changed the way I eat I enjoy choosing and creating what goes into my body. However, nothing can top home cooked food from my parents.
Favorite place to go in the UAE: A quiet beach.
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The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
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Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
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Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
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ESSENTIALS
The flights
Etihad (etihad.com) flies from Abu Dhabi to Mykonos, with a flight change to its partner airline Olympic Air in Athens. Return flights cost from Dh4,105 per person, including taxes.
Where to stay
The modern-art-filled Ambassador hotel (myconianambassador.gr) is 15 minutes outside Mykonos Town on a hillside 500 metres from the Platis Gialos Beach, with a bus into town every 30 minutes (a taxi costs €15 [Dh66]). The Nammos and Scorpios beach clubs are a 10- to 20-minute walk (or water-taxi ride) away. All 70 rooms have a large balcony, many with a Jacuzzi, and of the 15 suites, five have a plunge pool. There’s also a private eight-bedroom villa. Double rooms cost from €240 (Dh1,063) including breakfast, out of season, and from €595 (Dh2,636) in July/August.
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Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
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The Ashes
Results
First Test, Brisbane: Australia won by 10 wickets
Second Test, Adelaide: Australia won by 120 runs
Third Test, Perth: Australia won by an innings and 41 runs
Fourth Test: Melbourne: Drawn
Fifth Test: Australia won by an innings and 123 runs
