The International Monetary Fund envisages a stable global growth and the continuity of disinflation when it releases its World Economic Outlook on January 17, IMF Managing Director Kristalina Georgieva told reporters on Friday (10).
Georgieva said the US economy is performing “a little better” than expected, although there was great uncertainty regarding the government’s trade policies. President-elect Donald Trump, which was adding to the headwinds facing the global economy and driving up rates of long term interest.
With inflation approaching the Federal Reserve’s target and data showing a stable labor market, the Fed can afford to wait for more data before making further rate cuts, she said. Overall, interest rates are expected to remain “a little higher for quite a while,” he said.
The IMF will release an update on its global outlook on January 17, just days before Trump’s inauguration. Georgieva’s comments are the first indication of the Fund’s prospects for this year.
“It is not surprising that, given the size and role of the US economy, there is great global interest in the new administration’s policy directions, in particular on tariffs, taxes, deregulation and government efficiency,” Georgieva said.
“This uncertainty is particularly high regarding the path of trade policy going forward, adding to the headwinds facing the global economy, especially for countries and regions that are more integrated into global supply chains, mid-sized economies, and Asia as a region.”
