Global Economy's Resilience Amid U.S. Trade Policy

The global economy has shown resilience against U.S. trade policy decisions, according to IMF chief Kristalina Georgieva. Despite tariff shocks and financial pressures, countries have largely refrained from retaliating. However, potential risks remain, including a possible U.S.-China trade war and stretched market valuations, especially in the tech sector.

The global economy has demonstrated remarkable resilience in the wake of the United States' trade policy maneuvers. Kristalina Georgieva, the chief of the International Monetary Fund, highlighted that the choice of most countries to avoid retaliatory actions has helped stabilize economic conditions globally.

Speaking at the IMF and World Bank's annual meeting, Georgieva noted that while the current situation remains stable, threats such as a potential rekindling of the U.S.-China trade war, as suggested by President Trump, could undermine economic growth. In its latest outlook, the IMF slightly increased its 2025 global growth forecast.

Georgieva emphasized the risks posed by high market valuations, particularly in the technology sector, which have spurred significant market rallies. She warned that if the expected technological productivity gains do not materialize promptly, global growth may face challenges ahead.

(With inputs from agencies.)