IMF warns of global economy slow growth
(MENAFN) The International Monetary Fund (IMF) has issued a warning that the global economy is set to experience slower growth and increased inflation this year, largely due to trade disruptions and a surge in protectionist policies.
Speaking ahead of the release of the IMF’s World Economic Outlook, Managing Director Kristalina Georgieva highlighted mounting global uncertainty and rising financial instability. She attributed much of the turmoil to widespread tariffs, particularly those introduced by US President Donald Trump, which have strained relations with key trade partners such as the European Union and China.
Georgieva noted that the current level of trade policy unpredictability is “off the charts,” and pointed to IMF data showing that US effective tariff rates have soared to levels not seen in generations. Though she did not mention Trump directly, her comments clearly referenced his administration’s trade actions, including a blanket 10% tariff on all imports and significantly higher rates on Chinese goods—some exceeding 140%. In retaliation, China has raised tariffs on US imports to between 84% and 125%.
Echoing Georgieva’s concerns, other major financial leaders, including the heads of the Federal Reserve and World Bank, have also spoken out this week about the negative impact of aggressive trade measures on global stability.
In response to the worsening economic outlook, the European Central Bank cut interest rates, citing slowing growth caused by trade tensions. European leaders have been vocal in their criticism of Trump’s tariff policies. French Prime Minister Francois Bayrou accused Trump of launching an unprovoked global trade war, while European Commission President Ursula von der Leyen called the US tariffs a “major blow” to international cooperation. Spanish Prime Minister Pedro Sanchez and Polish Prime Minister Donald Tusk also condemned the measures as reckless and damaging.
Despite the backlash, Trump reaffirmed his approach during a meeting with Italian Prime Minister Giorgia Meloni, stating he’s in “no rush” to negotiate trade deals, claiming tariffs are bringing in substantial revenue for the United States.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
