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Bloomberg Talks

IMF Managing Director Kristalina Georgieva Talks US Trade War

Apr 23, 2025
Kristalina Georgieva, Managing Director of the International Monetary Fund, shares her insights on the looming risks of a global recession due to the ongoing US-led trade war. She emphasizes the IMF's critical role in ensuring financial stability amidst rising tensions and warns against trade disputes that may lead to economic uncertainty. Georgieva stresses the importance of international collaboration to navigate these challenges and highlights the dire need for coherent strategies to address potential tariffs and their impact on global growth.
11:20

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Quick takeaways

  • The IMF warns that ongoing uncertainty from the US trade war may increase the risk of a global recession.
  • Credible and independent central banks are crucial for maintaining stability as high uncertainty challenges investment and consumer confidence.

Deep dives

The Evolving Role of the IMF in Trade Relations

The International Monetary Fund (IMF) has a crucial role in navigating the complexities of global trade, particularly in times of tension between major economies. With ongoing trade wars and members potentially gaming the free trade system, the IMF focuses on promoting trade and conducting economic assessments to understand global trends. These assessments are vital as they reveal the interconnectedness of economies and show how slowed trade can impact global growth, exemplified by a recent downgrade of growth projections due to escalating trade tensions. This proactive approach underscores the importance of open dialogue among nations to resolve disputes and curb uncertainty.

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