Europe Asia News

Georgieva urged policymakers to take a pragmatic approach to implementing country-specific tariffs, while acknowledging that Europe is not using its economic strength to gain leverage on the global geopolitical stage.

The IMF chief argued that European leaders must do four things to unlock the continent’s economic potential: complete the capital markets union, finalize the energy union, make it easier for employers to recruit labor from across the EU, and invest in research and innovation.

On Monday, the IMF slightly raised its global economic outlook, saying it expects global growth to reach 3.3% this year and 3.2% in 2027.

Speaking to CNBC on Tuesday, Georgieva said, “One of the factors behind the upgrade is that the impact of tariffs has been softened. There has been no reciprocal trade war, and it would be very good if we could keep it that way. It would be good for the global economy. It would also be good for individual countries.”

Noting that countries may now be assessing the costs and benefits of actions related to trade tools, Georgieva called on officials and market watchers to “remain calm.”

“Last year, many people… became very excited about tariffs and many predicted a recession,” she said. “That did not happen. Why did it not happen? Because economic logic kicked in.”