IMF Managing Director, Kristalina Georgieva: Recession is not on the horizon despite tariff worries

U.S. President Donald Trump's push for sweeping tariffs is creating great uncertainty and denting confidence but is not likely to trigger a near-term recession, International Monetary Fund Managing Director Kristalina Georgieva said yesterday, March 31 in an interview with Reuters.

However, the IMF was not yet seeing "a dramatic impact" from the tariffs implemented and threatened so far by Trump since his return to the White House, Georgieva said.

The IMF will likely lower the economic outlook slightly in its next World Economic Outlook update in about three weeks, but "we don't see recession on the horizon," Georgieva said in the interview.

Georgieva stated that she does not expect a dramatic rise in inflation in the U.S., and if uncertainty is resolved quickly, the U.S. economy is expected to remain strong.

Initial signs from the Trump administration on its plans to deregulate digital assets are "quite encouraging," the IMF Managing Director also mentioned.

"There has been some overdose regulation in some cases," Georgieva said. "So removing barriers for entrepreneurship and growth is a good thing."

Georgieva said moves to deregulate should be done carefully without creating financial and macroeconomic risks.

She also stated that she expects negotiations on the new loan programme with Argentina to conclude before the upcoming spring meetings of the IMF and the World Bank in Washington between April 21 and 25.