As if International Monetary Fund –
Managing Director Cristalina Georgiefa's warning has come when the IMF will release its global economic approach next Tuesday, which he said, though it would show that there would be “remarkable mark downs” in development, but it would not be recessive.
However, this does not mean that countries will not face difficulties.
“All countries have to double their houses in order,” he said in the text of his speech in the United States on Thursday. ” “In the high uncertainty and frequent shock world, there is no room for delay in reforming to enhance economic and financial stability and improve growth.”
These comments have been three months since US President Donald Trump's second term, whose protection policies and wider taxes have shook global markets and promoted potential global recession concerns.
Georgiefa's remarks have noted the issues in recent months.
Get Daily National News
Get high news, political, economic, and current issues headlines, which are provided in your inbox once a day.
That is, “uncertainty is expensive,” he said, saying that the price of an item can be influenced by revenue in dozens of countries and investment decisions postponed, fluctuating financial markets, and even questions can be raised about which ports should travel in the ports.
He added that protectionism “has long ends productivity, especially in smaller economies.”
“Finally, trade is like water: When countries obstruct tariffs and neonatarizo obstacles, the flow turns,” he said. “In some sectors of some countries, cheap imports can be flooded. Others can see shortage. Trade continues, but obstacles are expected.”
During uncertainty, Georgiefa called on countries to adjust financial policies so that they could lower the debt level when needed, while also keeping their financial policies “fruitful and reliable.”
In the past week, since Trump's latest rates have been implemented, some central banks have adopted a way to wait and see.
Bank of Canada on Wednesday Did not reduce his benchmark rateKeeping it at 2.75 %, the bank said in a statement that major changes in US trade policy and tariff's unexpected capacity increase uncertainty, reduce the chances of economic growth and increase inflation expectations.
US Federal Reserve Chair Jerome Powell also Said in remarks on Wednesday It will need to be stopped before lowering interest rates between inflation and tariff effects.
Last week, the Bank of England also warned that Trump's import tariffs increased the risk of affecting the global economy.
Georgiefa said the second “very important priority” is that countries should focus on correcting internal and external economic imbalances, though it acknowledged that it could be difficult.
The IMF director suggested that three “biggest actors” – China, the European Union and the United States.
With China, the IMF recommended the country “widespread state involvement” in its industrial policies and industry, while promoting “permanently low” private consumption.
Although the IMF has noted that the US economy has seen a strong growth in productivity, it should work on putting its federal government's debt on a “falling path”, which Georgiefa says will need a significant reduction in the deficit.
He also said that the European Union should focus on “formal financial expansion” through Germany to ease defense and infrastructure costs, while overall the block would have to improve competition through “deepening the single market”.
Georgiefa says flexibility is being tested through the global trade system's “ribot” and that trade policy must be working.
He said, “It should be aimed at getting a settlement among the largest players who protects openness and provides a high level of playground.
“We need a more flexible global economy, not a split.”
B (b (b ( With the files of Global News' Ode Rana and Associated Press
And copy 2025 Global News, a division of Coros Entertainment Inc.