Despite Tariff Wars, Real Economy Stays Resilient, IMF Says

IMF Managing Director Kristalina Georgieva emphasized that despite the uncertainty caused by escalating tariff wars, the real economy remains strong with a robust labor market and a stable financial system. She warned, however, that negative perceptions could still impact economic activity.

According to International Monetary Fund Managing Director Kristalina Georgieva, the global economy is holding steady despite the ongoing tariff wars. Speaking on Thursday, she highlighted the resilience of the labor market and the robustness of the financial system as key stabilizers amid uncertainty.

Georgieva attributed this enduring strength to post-financial crisis reforms designed to fortify economic structures against shocks. She remarked, 'What we see is the real economy is functioning. Labor markets are strong, and the financial system is holding.' This endurance is vital, she stressed, especially in turbulent times.

Despite these positive indicators, Georgieva cautioned that negative perceptions could potentially disrupt economic activities. 'We must remain vigilant about how perceptions can influence real economic outcomes,' she noted, urging for continued reflection and adaptability in policy responses.

(With inputs from agencies.)