The International Monetary Fund (IMF) on Thursday signaled that it is likely to revise its global growth projections downward due to escalating trade tensions and dramatic changes in the international trading landscape.
Kristalina Georgieva, the IMF’s managing director, speaking at the Fund’s Washington headquarters ahead of the upcoming Spring Meetings of the IMF and World Bank, expressed concern over the persistent uncertainty now gripping global trade. While she stopped short of predicting a global recession, she made it clear that the IMF’s forthcoming economic outlook would reflect lower growth forecasts.
According to Georgieva, the current global environment, marked by mounting trade disputes and a fundamental realignment of trade patterns is contributing to a climate of elevated volatility in financial markets and “off the charts” uncertainty in trade policy.