Kathmandu. The trade war between the US and China has escalated. The International Monetary Fund (IMF) has warned that if this is not stopped, it will have a serious impact on the global economy.
IMF chief Kristalina Georgieva called for an “immediate de-escalation” of tensions. She also hoped the US and China would ease trade tensions and avoid disruption to the global flow of rare earth elements. Such disruptions, she said, would have a “major impact” on global growth. ’
Georgieva said after a meeting of the IMF’s Governing Committee that such a situation would increase uncertainty and further damage already weak global growth. ’
This year’s annual meetings of the IMF and the World Bank coincide with a new twist in the ongoing trade war between the world’s two largest economies. It has dominated discussions between thousands of financial executives and central bank governors around the world. If the trade tension between the US and China escalates, it will affect the world in many ways.
On Tuesday, the IMF forecast that global GDP growth for 2025 will be 3.2%. This is higher than July’s projection of 3.0% and April’s projection of 2.8%. The IMF said, “Tariff shocks and financial conditions have proved to be more favorable than expected. However, this projection does not reflect recent new threats from the US and China. ’
Georgieva said the IMF would monitor these developments closely. However, she said, “Member countries are generally relieved that the global economy has proved to be more resilient than we feared six months ago.” However, they are still deeply concerned. ’
