Obstacles Create New Aveneues for Trade

After India and the US announced a long-awaited trade deal, International Monetary Fund (IMF) managing director Kristalina Georgieva said concerns that aggressive tariff announcements, particularly by the US, would trigger inflation and disrupt global trade flows have so far proved overstated.

While headline tariff rates initially appeared steep, actual duties collected were significantly lower after negotiations and adjustments. Effective tariff levels had fallen from around 23% initially to closer to 9% in actuals after negotiations and agreements.

“Trade is like water. You put an obstacle, it goes around it,” Georgieva said at the World Governments Summit 2026.

She added that global trade had adapted through new bilateral and plurilateral agreements, as most countries remain dependent on an integrated global economy.

Giorgieva said the global economy has proved more resilient than expected despite trade disruptions, tariff uncertainty and rising geopolitical tensions. “We see a world that is more diverse, more multipolar and more resilient as a result,”.

She added that the IMF had upgraded its global growth projections for this year and next, as fears of a sharp slowdown triggered by trade tensions had not materialised.

“We upgraded these projections because, one, the private sector everywhere is agile and adaptable. Two, the trade shocks that we thought may come are muted. Three, incredible enthusiasm about the potential of Al productivity” said the.