IMF Chief Says Recession Risks Are Rising

The head of International Monetary Fund warned that the chances of global recession will rise if uncertainty over a US-led trade war continues to drag.

While the Washington-based fund doesn’t currently forecast such a downturn, the impact of tariff threats has created a level of uncertainty that’s “off the charts,” Kristalina Georgieva said in a Bloomberg Television interview Tuesday.

“If we have this cloud of uncertainty coming lower and lower, making it difficult for the business community and for households to take decisions, we will have a self-inflicted injury that I guarantee you we would regret,” she said. e IMF chief spoke on the sidelines of the fund’s spring meetings in Washington, hosted alongside the World Bank, which gathers finance ministers and central bankers from across the globe.

The IMF earlier in the day released its updated World Economic Outlook, cutting its global growth forecast to 2.8% this year, down from 3.3% in January.

--------

Watch Bloomberg Radio LIVE on YouTube

Weekdays 7am-6pm ET

Follow us on X

Subscribe to our Podcasts:

Bloomberg Daybreak

Bloomberg Surveillance

Bloomberg Intelligence

Balance of Power

Bloomberg Businessweek

Listen on Apple CarPlay and Android Auto with the Bloomberg Business app:

Apple CarPlay

Android Auto

Visit our YouTube channels:

Bloomberg Podcasts

Bloomberg Television

Bloomberg Originals