Thu Apr 17 16:40:43 UTC 2025: ## IMF Warns of Global Slowdown, Praises India’s Trade Reforms
**Washington D.C., April 18, 2025** – The International Monetary Fund (IMF) warned Thursday of a potential global economic slowdown, projecting “notable markdowns” in growth and inflation for several countries in its upcoming report. While not predicting a recession, IMF Managing Director Kristalina Georgieva urged nations to resolve escalating trade disputes, calling it the top priority for a multipolar world.
Georgieva’s comments came ahead of the IMF/World Bank Spring Meetings, the first since President Donald Trump’s return to the White House and his announcement of global tariffs. She acknowledged concerns about rising trade barriers and financial market volatility, highlighting the “literally off the charts” uncertainty caused by protectionist policies. She warned that rising trade barriers would negatively impact global growth, with protectionism eroding productivity in the long term, especially for smaller nations.
Despite the gloomy outlook, Georgieva identified some positive signs. She praised aspects of Trump’s deregulation agenda, suggesting it could create a “fertile environment” for U.S. businesses. She also pointed to potential benefits from bilateral trade negotiations, suggesting that countries might engage in trade with new partners.
Significantly, Georgieva highlighted India as a positive example, noting its recent moves to reduce tariff and non-tariff barriers. She lauded India’s increasing digitization, stating it was creating conditions for private sector investment and removing “self-inflicted injuries to growth.” Other countries expected to experience growth include Argentina and Ukraine.
Georgieva emphasized the need for countries to implement sound fiscal policies and maintain exchange rate flexibility. She also highlighted the increased U.S. effective tariff rate, which she said had reached levels unseen for generations, and the rise in non-tariff barriers, warning of the impact these will have on smaller economies. The IMF chief stressed that despite imports representing a small percentage of GDP for major economies like the U.S., China, and the EU, their actions have significant global implications. The IMF, she said, remains a valuable resource for nations, operating “like a savings account” and generating substantial returns for its contributors.
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