IMF chief: Greenland crisis could hamper global growth

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IMF chief: Greenland crisis could hamper global growth
Photo: Ng Han Guan/AP/TT

Kristalina Georgieva, head of the International Monetary Fund (IMF), warns that the Greenland crisis could have negative effects on global growth.

"We've run all sorts of simulations of what could happen, and what we see in these simulations is that we deviate from keeping trade roughly on track. That could hamper growth," Georgieva told Bloomberg in Davos.

Trump has threatened eight European countries with tariffs if he is not allowed to buy Greenland. The EU is considering countermeasures.

The best way forward is to find a path to an agreement, says Georgieva, who emphasizes that it is too early to more precisely assess the effects.

The IMF on Monday raised its global growth forecast for 2026 to 3.3 percent, up 0.2 percentage points from its previous forecast, while warning that geopolitical unrest poses a risk.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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