World economy, markets functioning well despite trade tensions, IMF's Georgieva says

WASHINGTON, April 17 (Reuters) - The world's real economy is functioning well despite massive uncertainty over escalating tariff wars, with a strong labor market and a solid financial system, International Monetary Fund Managing Director Kristalina Georgieva said on Thursday but she noted negative perceptions can affect economic activity.

"What we see is the real economy is functioning. Labor markets are still quite strong -- very important -- and we have to reflect on that the financial system is holding despite all the nervousness," Georgieva said. "Why? Because, after the global financial crisis, a lot has been done to build strength, exactly for moments like this."