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The International Monetary Fund (IMF), has revealed that they will revise the projection of world economic growth down next week when the world economy prospects are released, only stop predicting recession.
The Director of Fund Implementation, Kristalina Georgieva made this known in a speech entitled “Towards a more balanced and more resilient world economy” which was delivered during the 2025 World Bank meeting on Thursday, April 17, 2025.
He noted that the funds would evaluate the cost of the ongoing global trade war in the prospect while increasing the alarm that the resilience of the global market was being tested again, driven by the new tariff increase that was imposed by President Donald Trump from the United States.
“When countries put up obstacles in the form of tariffs and non -tariff barriers, the flow flows. Some sectors in some countries may be flooded with cheap imports; others may see deficiencies. Trade continues, but disturbances spend costs,” he said.
He added that the funds would measure these costs in the prospects of the new world economy, which will be released early next week.
“In it, our new growth projection will include a prominent price decline, but not a recession. We will also see markup on the estimated inflation for several countries”.
“Six months ago, in this place, I talked about low growth and high debt. But I also talked about resilience – countries that survived a big surprise thanks to strong fundamentals and nimble policies.
“This resilience is being tested again – with a reboot of a global trading system. Financial market volatility increases. And the uncertainty of trading policies literally outside the graphics,” he began.
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However, he suggested that it was time to respond wisely.
“And that is a call to respond wisely. The world economy is more balanced and more resilient in reach. We must act to secure it”.
Exploring problems, Georgieva warns that trade tensions such as bubbling pots for a long time and are now boiling.
“Most, what we see is the result of erosion of trust – trust in the international system, and trust between countries.
“The integration of the global economy has raised a large number of people out of poverty and makes the world better.
“But not everyone gets benefits. The community is perforated by work that goes abroad. Wages are suppressed by increasing the availability of cheap labor.
“Prices rise when the global supply chain is disrupted. Many blame the international economic system for the injustice felt in their lives.
“Trading distortion – Tariff and Nontriff barriers – have a negative perception of multilateral systems that appear to fail to provide equivalent play fields,” he complained.
By: Babajide Okeowo
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