Islamabad, Apr 5, 2025: International Monetary Fund (IMF) Managing Director Kristalina Georgieva issued a stark warning on Thursday, stating that the newly announced tariffs by the United States pose a serious risk to the already fragile Threaten global economic.
Her remarks come in response to President Donald Trump’s latest wave of trade barriers, which have reignited fears of a deeper global trade conflict and raised concerns about potential inflation and recession.
In her official statement, Georgieva emphasized that the mounting trade tensions especially those triggered by unilateral actions such as widespread tariff impositions could significantly derail the global economic recovery.
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“These new tariffs clearly present a considerable risk to the Threaten global economic outlook at a time when growth is already subdued,” she noted, underlining the potential fallout such protectionist policies could cause.
Georgieva further appealed to the U.S. and its international trading partners to approach the issue with diplomacy and collaboration rather than confrontation. “It is vital to avoid steps that could further destabilize the world economy.
We strongly urge the United States and its global partners to engage in constructive dialogue to ease trade frictions and restore predictability,” she said.
Her cautionary comments underscore the increasing anxiety among economists and policymakers over the ripple effects of prolonged trade disputes.
With global supply chains already under strain and inflationary pressures mounting in various regions, any further disruption is likely to have far-reaching consequences.
Earlier this year, the IMF had forecasted global GDP growth at 3.3% a pace notably slower than the average growth rate of 3.7% recorded during the first two decades of this century.
The IMF is expected to release its updated World Economic Outlook later this month, just ahead of the Spring Meetings in Washington. These meetings, which will bring together finance ministers, central bankers.
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With businesses, investors, and policymakers watching closely, the IMF’s upcoming projections will serve as a critical indicator of the global economic trajectory.
Georgieva’s call for restraint and cooperation signals the urgency of preventing further shocks to a world economy that is already walking a tightrope.
