The global economy is expected to avoid a recession despite rising market volatility and slower growth caused by U.S. tariff policies, according to IMF Managing Director Kristalina Georgieva.
Speaking ahead of the IMF and World Bank Spring Meetings in Washington, Georgieva warned that trade tensions and protectionist policies are harming global growth. The IMF now anticipates “notable” markdowns to its previous forecasts but stops short of predicting a full-blown recession.
She outlined three major risks: rising uncertainty, upfront economic slowdowns due to trade barriers, and long-term productivity losses, especially in smaller economies. Georgieva urged countries to reform fiscal policies, support central bank independence, and pursue fairer global trade.
The IMF is expected to revise its global growth outlook, previously set at 3.3% for 2025–2026, in its upcoming World Economic Report.
