The International Monetary Fund (IMF) has stated that it expects global economic growth to slow down due to trade tensions fueled by US President Donald Trump’s tariff war. In a speech in Washington, Kristalina Georgieva, the IMF’s managing director, said the latest world economic outlook forecasts predict “notable markdowns” but no recession.
Georgieva noted that economic resilience is being tested by the reboot of the global trading system. She also pointed out that trade tensions are caused by an erosion of trust in the international system and between countries.
The IMF’s forecast comes amid a period of financial market chaos since Trump’s “liberation day” tariffs, which have led to stock markets plummeting before recovering slightly. The uncertainty surrounding Trump’s economic policies has made it challenging for economists to make accurate predictions.
Unlike European Central Bank president Christine Lagarde, who refused to comment on the impact of tariffs on inflation, Georgieva stated that the IMF has raised inflation forecasts for some countries. She emphasized the importance of being data-dependent during a period of uncertainty.
The IMF’s warning comes as the global economy faces significant challenges, including the ongoing trade tensions and economic slowdown. The organization’s forecast highlights the need for policymakers to take action to address these issues and promote sustainable economic growth.
Source: https://www.theguardian.com/business/live/2025/apr/17/sainsburys-profits-us-federal-reserve-fed-inflation-donald-trump-tariffs-european-central-bank-ecb-interest-rates-euro-ftse-100-business-live