00:00Most countries' decisions not to retaliate against U.S. President Donald Trump's tariffs
00:05is helping to bolster the global economy.
00:08Kristalina Georgieva, Managing Director of the International Monetary Fund,
00:12says global growth is also supported by a lower-than-expected effective U.S. tariff rate.
00:20Yesterday, the IMF raised its 2025 global GDP growth forecast to 3.2%, up from 3% in July.
00:28But it warned that a renewed U.S.-China trade war could still slow growth significantly.
00:35Georgieva said the tariffs announced by Trump in April were initially calculated to average 23%,
00:41although trade deals with the European Union, Japan and other major partners
00:46have reduced that effective rate to about 17.5%.
00:50After accounting for exceptions to keep the economy functioning smoothly,
00:54the IMF estimates the rate being collected is between 9% and 10%,
00:59less than half the original expectation.
01:02Other factors supporting the global economy include stronger private sector policies,
01:07more efficient resource use and companies quickly adapting supply chains to minimize tariff impacts.
Comments