The additional customs duties that the US president wants are not expected to cause a worldwide recession, the Director -General of the International Monetary Fund (IMF) ruled Monday, however, expressing concerns about the possibility of various states to manage new states.

“We do not foresee dramatic consequences” for the world economy; “It will probably be a slight correction down (…) We do not see a recession on the horizon. We do not see stagnation on the horizon, ”Cristalina Georgieva reassured during a digitally event and organized by the Reuters news agency.

The term stagnation describes economic context with weak growth and inflation higher than the historical average.

“However, I would like to add a warning,” the IMF chief executive added.

What we are worried about is the ability of the economies to withstand additional shocks, “he explained. State debts have increased a lot due to the pandemic of the new crown, which leaves smaller room for governments to react to crisis cases.

With this background, he expressed hope that inflation would not record a rapid increase, which could lead to interest rates increase, magnifying debt.

Within a few weeks after returning to the White House, Donald Trump greatly increased customs duties on specific products from specific origin and promises a new wave from tomorrow.

The “best” would be to be clarified “as soon as possible,” said Ms. Georgieva. As “our research shows us that the longer time passes, the greater the risk there is” uncertainty “to have a negative impact on growth”.