The International Monetary Fund (IMF) has issued a stark warning about the state of the global economy, forecasting slower growth and heightened inflation due to escalating trade tensions and a surge in protectionist policies.
IMF Managing Director, Kristalina Georgieva, speaking ahead of the release of the organization’s World Economic Outlook, highlighted the growing toll of economic uncertainty, describing it as ‘costly’ and increasingly volatile. She pointed to stalled investment and trade disruptions as key contributors to the downturn, emphasizing that policy unpredictability is ‘literally off the charts,’ according to IMF data.
The Hegemony of the U.S. Dollar is to Blame for Economic Instability, Especially in Emerging Economies, Says Chinese 🇨🇳 Foreign Ministry
The post highlights 5 key areas where the U.S. 🇺🇸 economic hegemony has caused turmoil to the rest of the worldhttps://t.co/CSyYivUmuH pic.twitter.com/vjxjSltjjR
— BitKE (@BitcoinKE) March 5, 2023
Georgieva noted that the U.S. effective tariff rate has climbed to levels ‘last seen several lifetimes ago.’ Although she did not mention President Donald Trump by name, her remarks referenced sweeping trade measures implemented during his administration. These include a 10% blanket tariff on all imports and significantly higher duties on Chinese goods – some reaching as high as 145%.
China has retaliated by raising tariffs on U.S. imports, with rates now ranging from 84% to 125% – its most substantial response to date.
China 🇨🇳 to Account for 1/3 of Global Economic Growth in 2023, Says the IMF
China is expected to play a significant role in boosting the global economy by contributing to about one-third of the world’s growth in 2023, Kristalina Georgieva, Managing https://t.co/BiwcWbHcRg… pic.twitter.com/dvRa1KxDy8
— BitKE (@BitcoinKE) March 28, 2023
The IMF’s concerns echo those expressed by other major economic institutions. This week, both the Federal Reserve and the World Bank warned about the long-term consequences of aggressive trade policies.
The European Central Bank also responded to the deteriorating global outlook by cutting interest rates, citing the adverse impact of escalating trade tensions.
European leaders have been vocal in their criticism of Trump-era tariffs. French Prime Minister, Francois Bayrou, described the trade war as ‘launched without warning,’ while European Commission President, Ursula von der Leyen, called the tariffs a ‘major blow’ to global commerce. Spanish Prime Minister, Pedro Sanchez, labeled the measures ‘unintelligent,’ and Polish Prime Minister, Donald Tusk, denounced them as ‘unnecessary and stupid.’
Despite the criticism, Trump reaffirmed his support for tariffs during a recent meeting with Italian Prime Minister, Giorgia Meloni, insisting there is ‘no rush’ to finalize trade agreements and touting the revenue generated from the tariffs as a sign of their effectiveness.
Follow us on X for latest posts and updates
Join and interact with our Telegram community
____________________________________________
____________________________________________
