The International Monetary Fund (IMF) has stated that, despite trade tariff uncertainty being “literally off the charts,” there will not be a global recession. The IMF highlighted in its forecast for the world economy that global share prices have dropped as trade tensions flared, warning about an “erosion of trust” between countries. However, it stopped short of predicting a worldwide recession, stating that “our new growth projections will include notable markdowns, but not recession.” This comes as leaders and businesses respond to US President Donald Trump’s tariffs announced on 2 April. Global stock markets plummeted following the announcement, with the FTSE 100 index still 4.6% lower than a month ago. Predictions of a global recession have risen as firms slash spending and investment amid the uncertainty. On Wednesday, the World Trade Organization (WTO) forecast that global trade will fall this year because of Trump’s tariffs. The IMF’s outlook remains relatively optimistic, with managing director Kristalina Georgieva urging countries to respond wisely. She emphasized the need for all countries to redouble efforts to stabilize their economies. Specifically, she called on Europe to reduce restrictions on internal trade in services and deepen its single market, while China needs to increase its social safety net, and the US government needs to reduce its debt.
— new from BBC
