Indian economy likely to be 'a little weaker' in 2025: IMF MD
Washington, Jan 11: The Indian economy is expected to be "a little weaker" in 2025 despite steady global growth, IMF Managing Director Kristalina Georgieva has said.
Georgieva also said she expects quite a lot of uncertainty in the world this year mainly around the trade policy of the US.
In her annual media roundtable with a group of reporters on Friday, she said global growth is expected to be steady in 2025, but with regional divergence.
Georgieva said she expects the Indian economy to be a little weaker in 2025. However, she did not explain it any further. The World Economy Outlook update week will have more details about it.
“The US is doing quite a bit better than we expected before, the EU is somewhat stalling, (and) India a little weaker," she said.
Brazil was facing somewhat higher inflation, she said.
In China, the world’s second-largest economy, the International Monetary Fund (IMF) was seeing deflationary pressure and ongoing challenges with domestic demand, she said.
"Low-income countries, despite all the efforts they are making, are in a position when any new shock can affect them quite negatively,” Georgieva said.
“What we expect in 2025 is to have quite a lot of uncertainty, especially in terms of economic policies. Not surprisingly, given the size and role of the US economy, there is keen interest globally in the policy directions of the incoming administration, in particular on tariffs, taxes, deregulation and government efficiency,” Georgieva said.
“This uncertainty is particularly high around the path for trade policy going forward, adding to the headwinds facing the global economy, especially for countries and regions that are more integrated in global supply chains, medium-sized economies, (and) Asia as a region," she said.
That uncertainty is actually expressed globally through higher long-term interest rates, even though short-term interest rates have gone down, the IMF Managing Director said.
Donald Trump will be sworn in as the 47th President of the United States on January 20, replacing Joe Biden at the White House.
Trump, 78, has announced plans to impose additional tariffs on countries like China, Canada and Mexico. He has publicly announced the use of tariffs as a key policy tool.
On inflation, the IMF expects global disinflation to continue, Georgieva said.
"As we all recognise, the higher interest rates that were necessary to fight inflation did not push the world economy into recession. They have delivered the desired results. Headline inflation is converging back to target sooner in advanced economies than in emerging markets,” she said.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
President Trump wants to impose 15% tariff, up from 10% he announced after Supreme Court decision
Washington (AP): President Donald Trump said Saturday that he was raising the global tariff he wants to impose to 15 per cent, up from 10 per cent he had announced a day earlier.
Trump said in a social media post on that he was making the decision “Based on a thorough, detailed, and complete review of the ridiculous, poorly written, and extraordinarily anti-American decision on Tariffs issued yesterday,” by the US Supreme Court.
After the court ruled he didn't have the emergency power to impose many sweeping tariffs, Trump signed an executive order on Friday night that enabled him to bypass Congress and impose a 10 per cent tax on imports from around the world. The catch is that those tariffs would be limited to just 150 days, unless they are extended legislatively.
Trump's post significantly ratcheting up a global tax on imports to the US yet again was the latest sign that despite the court's check, the Republican president was intent on continuing to wield in an unpredictable manner his favourite tool to for the economy and to apply global pressure. Trump's shifting announcements over the last year that he was raising and sometimes lowering tariffs with little notice jolted markets and rattled nations.
Saturday's announcement seemed to a be a sign that Trump intends to use the temporary global tariffs to continue to flex.
“During the next short number of months, the Trump Administration will determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of Making America Great Again,” Trump wrote on his Truth Social media network.
Under the order Trump signed Friday night, the 10 per cent tariff was scheduled to take effect starting February 24. The White House did not immediately respond to a message inquiring when the president would sign an updated order.
In addition to the temporary tariffs that Trump wants to set at 15 per cent, the president said Friday that he was also pursuing tariffs through other sections of federal law which require an investigation by the Commerce Department.
Trump made an unusually personal attack on the Supreme Court judges who ruled against him in a 6-3 vote, including two of those he appointed during his first term, Justices Neil Gorsuch and Amy Coney Barrett. Trump, at a news conference on Friday, said of the two justices: “I think it's an embarrassment to their families."
He was still seething Friday night, posting on social media complaining about Gorsuch, Coney Barrett and Chief Justice John Roberts, who ruled with the majority and wrote the majority opinion. On Saturday morning, Trump issued another post declaring that his “new hero” was Justice Brett Kavanaugh, who wrote a 63-page dissent. He also praised Justices Clarence Thomas and Samuel Alito, who were in the minority, and said of the three dissenting justices: "There is no doubt in anyone's mind that they want to, MAKE AMERICA GREAT AGAIN!"
