World Bank's Banga Advocates Trade Liberalization for Economic Growth

World Bank President Ajay Banga emphasizes the need for developing nations to lower their trade tariffs to prevent reciprocal taxes and encourage economic stability. He links the current global economic slowdown to recent trade tensions and stresses the importance of negotiation and regional integration in revitalizing growth.

World Bank President Ajay Banga has called on developing countries to liberalize trade by lowering tariffs, which he argues are often higher than those in advanced economies. This move, Banga contends, could mitigate the risk of reciprocal import taxes and foster economic stability.

Banga spoke amid heightened global uncertainty, driven by U.S. tariffs and retaliatory measures from China and others, noting that these tensions contribute to a more cautious economic environment. While he did not provide specific predictions, Banga acknowledged that global growth is expected to decelerate from earlier forecasts.

Highlighting the importance of dialogue and negotiation, Banga urged countries to engage in trade discussions and explore deeper regional integration. He warned that persistent higher tariffs hinder transparency and growth, emphasizing that the World Bank has long advocated for reducing trade barriers to catalyze investment and economic dynamism.

(With inputs from agencies.)