Global Trade Turbulence: IMF's Georgieva Foresees New Economic Challenges

IMF Managing Director Kristalina Georgieva highlights rising trade tensions, chiefly fueled by U.S. tariffs, as a major cause of economic uncertainty. While forecasting no recession, the IMF expects revised growth projections and increased inflation in some regions. Georgieva emphasizes the need for cooperation amidst significant global trade policy shifts.

Global trade tensions fueled by U.S. tariffs are sparking economic uncertainty, according to IMF Managing Director Kristalina Georgieva. Speaking Thursday, she forecasted downward revisions to IMF economic growth projections but dismissed concerns of an impending global recession.

Georgieva highlighted that the revamped trading system, incited by the U.S. and retaliatory actions from China and the EU, has generated 'off the charts' policy uncertainty and volatility. This, along with potential inflation spikes, underscores the need for vigilant economic reforms and cooperation among nations.

With the U.S., China, and EU as major importers, global impacts are expected to be far-reaching, affecting smaller economies significantly. Georgieva calls for a unified response to promote global economic resilience and counter the long-term risks of protectionism, which threatens productivity and innovation.

(With inputs from agencies.)