The European Union is somewhat stagnant, (and) India is a little weak.” He said Brazil is facing somewhat higher inflation. He said that in China, the world's second-largest economy, the International Monetary Fund (IMF ) Looking at deflationary pressures and ongoing challenges with domestic demand, Georgieva said, “Low-income countries, despite all their efforts, are in a situation where any new shock could affect them significantly negatively. Yes.” Georgieva said, “We expect there will be a lot of uncertainty in 2025, especially in terms of economic policies. Not surprisingly, given the size and role of the U.S. economy, there is strong interest globally in the policy directions of the incoming administration, particularly on tariffs, taxes, regulation, and government efficiency.” This uncertainty will shape the path of trade policy going forward. This is particularly high around the world, which is further exacerbating the headwinds facing the global economy, especially for countries and regions that are at the core of global supply chains, medium-sized economies, (and) Asia as a region. Are integrated,” he said.
The IMF Managing Director said that this uncertainty is actually expressed globally through higher long-term interest rates, even as short-term interest rates have decreased. Donald Trump will be sworn in as the 47th President of the United States on January 20, replacing Joe Biden at the White House. Trump, 78, has announced plans to impose additional tariffs on countries like China, Canada and Mexico. He has publicly announced his intention to use tariffs as a major policy tool. Regarding inflation, the IMF expects global deflation to continue, Georgieva said. “As we all know, the higher interest rates needed to fight inflation did not push the world economy into recession. They have produced the desired results. Headline inflation is getting back on target sooner in advanced economies than in emerging markets, ” he said.
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