Dubai: It is 'too early to say' how recent US tariffs will affect the global economy as Washington gradually rolls out its trade policies and the response of businesses and consumers remains uncertain, the International Monetary Fund's (IMF) managing director said Tuesday.

According to Anadolu Agency, Kristalina Georgieva emphasized at the World Government Summit that assessing the tariffs' impact heavily depends on the inflation outlook. She noted that countries experiencing economic slowdowns might need to consider reducing interest rates to cope with the situation.

Georgieva explained that determining the inflation outlook is crucial to understanding the effect of US tariffs, as nations facing economic challenges may be compelled to lower interest rates. The varied reactions of countries contribute to the uncertainty, making it difficult to predict the full impact, she stated.

She highlighted that the US economy has outperformed other G20 countries, with a noticeable increase in capital inflow compared to the pre-pandemic period. This strong performance has bolstered the US dollar, which, while beneficial for the US, poses challenges for most emerging and developing markets.

Despite these uncertainties, Georgieva noted that the global economy has shown resilience. The IMF anticipates global economic growth to reach 3.3% in 2025, indicating a positive outlook despite the ongoing shocks.