IMF's Georgieva warns of rising trade tensions, urges global cooperation

IMF Managing Director Kristalina Georgieva warned that escalating global trade tensions, particularly those driven by U.S. tariffs and retaliatory actions from China and the EU, are fueling unprecedented economic uncertainty and market volatility. She noted that these tensions, likened to a pot boiling over, have led to downward revisions in the IMF's global economic growth forecasts, though a global recession is not expected at this time. Georgieva highlighted how heightened tariffs, non-tariff barriers, and policy unpredictability are suppressing investment, distorting financial markets, and potentially eroding long-term productivity. She stressed the importance of reducing uncertainty, especially between the U.S. and China, and called for renewed commitment to a fairer, rules-based trading system. Georgieva outlined the need for countries to strengthen domestic fundamentals, reduce macroeconomic imbalances, and cooperate internationally to counter the risks of protectionism. Ultimately, she urged unified action to build a more balanced and resilient global economy.