IMF Warns of Highest Tariffs in Century Amid Slowing Global Growth
(MENAFN) The world economy is moving into a new phase marked by tariff rates that haven’t been this high in a hundred years, according to the IMF’s chief economist, who issued the warning on Tuesday.
Pierre-Olivier Gourinchas pointed to the IMF’s latest global economic report, which shows a significant downward revision in growth projections due to rising trade conflicts and heightened uncertainty in policy environments.
The report anticipates global economic growth will reach just 2.8% in 2025.
"In the US, tariffs constitute a negative supply shock, with growth revised down and inflation revised up," he stated in a post shared on X. "For trading partners like China, tariffs are mostly a negative demand shock, with growth and inflation both revised down."
He noted that the IMF urges caution and a renewed emphasis on cooperation, emphasizing the importance of reestablishing a trade system that is transparent, consistent, and reliable.
"Monetary policy must remain agile; rebuilding fiscal buffers is crucial, and structural reforms remain needed," he added.
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