IMF Raises Alarm on Global Economic Outlook
“Uncertainty is costly,” mentioned organization chief Kristalina Georgieva, highlighting the impact of stalled investment, slower growth, and increasing inflation caused by trade wars. The International Monetary Fund projects a slower growth...
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“Uncertainty is costly,” mentioned organization chief Kristalina Georgieva, highlighting the impact of stalled investment, slower growth, and increasing inflation caused by trade wars.
The International Monetary Fund projects a slower growth rate for the global economy this year along with heightened inflation, attributing these trends to global trade disruptions and a rise in “protectionism.”
The sweeping tariffs enacted by US President Donald Trump, intended to boost domestic manufacturing and renegotiate trade deals favoring the US, have led to significant tensions with trade partners such as the European Union and China.
During a press conference on Thursday, IMF Managing Director Kristalina Georgieva urged for immediate reforms and a revival of global cooperation as she previewed the IMF’s forthcoming World Economic Outlook report.
There has been a notable increase in financial volatility, and the uncertainty surrounding trade policies is “literally off the charts,” Georgieva remarked, referencing IMF data indicating a significant rise in global unpredictability. She pointed out that the US effective tariff rate has surged to levels “last seen several lifetimes ago.”
While she didn’t explicitly name Trump, the escalation in tariffs is a direct result of his administration’s extensive trade measures, which include a blanket 10% tariff on all imports and substantially higher rates on Chinese goods, with certain products facing tariffs as steep as 145%. In retaliation, China has increased tariffs on all US imports from 84% to 125%, marking its most significant counteraction to date.
Georgieva’s comments echoed concerns raised by other prominent economic leaders this week, including heads of the Federal Reserve and the World Bank, who have indicated the detrimental effects of Trump’s trade policies.
On Thursday, the European Central Bank announced a reduction in interest rates, citing “deteriorating growth prospects” as a result of the increasing trade tensions.
Earlier this week, French Prime Minister Francois Bayrou criticized Trump for initiating a global trade war “without warning,” condemning his administration for imposing sweeping tariffs on both rivals and allies and for undermining decades of international cooperation.
Top EU officials have also expressed that the tariffs undermine global trade and jeopardize economic stability. European Commission President Ursula von der Leyen characterized the tariffs as a “major blow,” while Spanish Prime Minister Pedro Sanchez described them as “unintelligent,” and Polish Prime Minister Donald Tusk deemed them “unnecessary and stupid.”
On Friday, Trump reaffirmed his position in a meeting with Italian Prime Minister Giorgia Meloni, stating that he is in “no rush” to solidify trade agreements, asserting that the tariffs are producing significant revenue for the US.
Alejandro Jose Martinez contributed to this article for TROIB News
The International Monetary Fund projects a slower growth rate for the global economy this year along with heightened inflation, attributing these trends to global trade disruptions and a rise in “protectionism.”
The sweeping tariffs enacted by US President Donald Trump, intended to boost domestic manufacturing and renegotiate trade deals favoring the US, have led to significant tensions with trade partners such as the European Union and China.
During a press conference on Thursday, IMF Managing Director Kristalina Georgieva urged for immediate reforms and a revival of global cooperation as she previewed the IMF’s forthcoming World Economic Outlook report.
There has been a notable increase in financial volatility, and the uncertainty surrounding trade policies is “literally off the charts,” Georgieva remarked, referencing IMF data indicating a significant rise in global unpredictability. She pointed out that the US effective tariff rate has surged to levels “last seen several lifetimes ago.”
While she didn’t explicitly name Trump, the escalation in tariffs is a direct result of his administration’s extensive trade measures, which include a blanket 10% tariff on all imports and substantially higher rates on Chinese goods, with certain products facing tariffs as steep as 145%. In retaliation, China has increased tariffs on all US imports from 84% to 125%, marking its most significant counteraction to date.
Georgieva’s comments echoed concerns raised by other prominent economic leaders this week, including heads of the Federal Reserve and the World Bank, who have indicated the detrimental effects of Trump’s trade policies.
On Thursday, the European Central Bank announced a reduction in interest rates, citing “deteriorating growth prospects” as a result of the increasing trade tensions.
Earlier this week, French Prime Minister Francois Bayrou criticized Trump for initiating a global trade war “without warning,” condemning his administration for imposing sweeping tariffs on both rivals and allies and for undermining decades of international cooperation.
Top EU officials have also expressed that the tariffs undermine global trade and jeopardize economic stability. European Commission President Ursula von der Leyen characterized the tariffs as a “major blow,” while Spanish Prime Minister Pedro Sanchez described them as “unintelligent,” and Polish Prime Minister Donald Tusk deemed them “unnecessary and stupid.”
On Friday, Trump reaffirmed his position in a meeting with Italian Prime Minister Giorgia Meloni, stating that he is in “no rush” to solidify trade agreements, asserting that the tariffs are producing significant revenue for the US.
Alejandro Jose Martinez contributed to this article for TROIB News
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