The International Monetary Fund (IMF) has downgraded fears of a global recession, citing trade tariff uncertainty as a major concern. Global share prices have dropped due to rising tensions, but the IMF believes growth projections will be marked by notable markdowns rather than a full-blown recession.
The fund’s managing director, Kristalina Georgieva, urged countries to take action to mitigate the impact of trade uncertainty. She called on Europe to deepen its single market and reduce restrictions on internal trade in services. Meanwhile, China needs to strengthen its social safety net to prevent “precautionary saving” and reduce reliance on tariffs.
The IMF’s outlook contrasts with other predictions, including the World Trade Organization’s forecast that global trade will decline this year due to US President Donald Trump’s tariffs. The Bank of England has also warned of rising trade tensions contributing to a material increase in the risk to global growth. However, the European Central Bank recently reduced its key interest rate citing similar concerns.
The IMF’s statement comes amid rising uncertainty and predictions of a global recession. However, it suggests that with coordinated efforts, countries can work towards a more balanced and resilient world economy.
Source: https://www.bbc.com/news/articles/ce3vk8z4p5lo