The IMF excludes an economic recession for the tariff effect, but will lower the Perspectives of GDP

The director of the International Monetary Fund (IMF), Kristalina Georgieva, has expected the Rate climb Started by the United States will not lead to an economic recessionBut Yes will imply Neerwaartse Reviews of the growth prospects of the Gross Domestic Product (GDP).

The IMF is planning to launch the new edition of its biennial report ‘World Economic Perspective’ (WEO) next week. As usual, the report includes the new battery of economic projections, both world and per countries.

In their opening speech of the FMI spring meetings and the World Bank, Georgieva expected the new projections to “include remarkable downward reviews, but not a recession.” In the same way, upward reviews will be recorded in inflation on ‘some countries’.

In his speech, Georgieva emphasized that with all the elevations, breaks, climbs and exemptions from rates that have been performed in the United States in recent weeks, the effective rate for the United States “has risen at levels in view of different generations behind.”

“Small advanced economies and most emerging markets are more supported by trade for growth and are more exposed, including harder financial circumstances. Low -income countries are confronted with the extra challenge of auxiliary flows in collapse because donor countries focus on dealing with domestic worries,” the director said.

In any case, the Head of the IMF has paid to the fact that the rates are not only paid by commercial partners, but influences importers for lower benefits and consumers for higher prices.

“Protectionism Herodes Long -term productivity, especially in smaller economies. The protection of the competition industries reduces incentives for efficient allocation of resources,” said Georgieva. He also warned that protectionism damages innovation, although he has confirmed that if the domestic market is large and with high competition, the negative effects can be limited.

In his recipes What each region should do, Georgieva has noticed that the tax extension that is discussed in the European Union, with Germany at the head, will upload the domestic demand.

“Europe needs the banking union. Europe needs the Union of capital markets. And Europe needs fewer restrictions for internal services (…). Together will increase fiscal integration and the greatest integration will increase growth, improve resilience and improve external and internal imbalances.

In the United States, avoided to make recommendations about its commercial policy and is limited to applying for a reduction in government debt and budget deficits.

In any case, he asked at a multilateral level for an agreement between the most important countries in the world trade “that keeps the opening and reaches uniform rules” to return to the global trend of rates.