Global economy forecasts "soft landing"

IMF Managing Director Georgieva said taxes are an ineffective tool because they can push up prices.

Managing Director of the International Monetary Fund   (IMF), Ms. Kristalina Georgieva, warned that the US's plan to impose new tariffs on imported goods risks pushing up consumer prices, heavily impacting low-income families in this country.

The warning comes just weeks before the US presidential election, when both candidates have come out in support of   raise tariffs. Republican candidate, former President Donald Trump, has proposed imposing a minimum 10% tariff on imported goods. Meanwhile, his Democratic opponent, Vice President Kamala Harris, has also said she would raise import tariffs if elected.

In an interview with CNBC, IMF Managing Director Georgieva said that taxes are an ineffective tool because they can push up prices. According to her, in the context of financial agencies trying to reduce inflation, it is necessary to avoid creating new factors that increase prices.

The IMF chief also noted that rising prices in the US would affect consumers, especially low-income families, and could lead to the risk of some US businesses facing retaliatory measures.

On the outlook for the global economy , Ms. Georgieva said that a “soft landing” appeared to be underway, with inflation falling without triggering a severe recession. However, she also said that economies needed to adopt cautious policies in the context of the world situation with many potential risks of instability, such as tensions in the Middle East.

Source: https://baoquangninh.vn/kinh-te-toan-cau-du-bao-ha-canh-mem-3322203.html