Global Trade Tensions: IMF's Strategic Outlook Amid Economic Uncertainties

The IMF anticipates downward revisions in global growth forecasts due to heightened trade tensions and shifts in the global trading system, though a recession is not expected. IMF Director Kristalina Georgieva emphasizes the importance of reducing uncertainty and maintaining economic reforms amid volatile financial markets and elevated perception risks.

The International Monetary Fund (IMF) is poised to revise global economic forecasts downward due to increased trade tensions, but a global recession remains off the table, said IMF Managing Director Kristalina Georgieva.

Georgieva highlighted that recent tariffs by the U.S. and retaliatory measures by China and the European Union have intensified market uncertainties and financial volatility. She urged global cooperation to alleviate the economic strains caused by long-standing trade disputes.

Despite these challenges, Georgieva pointed out that the real economy is stable, with robust labor and financial markets, but warned that negative perceptions could adversely impact economic performance further.

(With inputs from agencies.)