The International Monetary Fund (IMF) is reassuring the world that the uncertainty caused by President Donald Trump’s tariffs will not lead to a global recession.
The IMF reportedly said that trade tariff uncertainty is “literally off the charts” but there will not be a global recession.
What is the International Monetary Fund (IMF)?
The International Monetary Fund (IMF) is an international organization founded in 1944 to promote global economic stability and growth. Headquartered in Washington, D.C., it has over 190 member countries. The IMF’s primary goals are to encourage international monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
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The IMF carries out three main functions: surveillance, where it monitors global and country-level economic developments; financial assistance, providing loans to member countries facing balance of payments problems or economic crises; and technical assistance and training, helping countries improve their economic management and financial institutions.
When countries borrow from the IMF, they often must implement economic reforms as part of the agreement. These reforms aim to restore financial stability and encourage long-term growth. Overall, the IMF plays a key role in stabilizing the global economy, especially during financial crises or economic downturns.
The international economic group reportedly said in its forecast for the world economy that global share prices have dropped “as trade tensions flared” and warned about an “erosion of trust” between countries but it did stop short of predicting a global recession by saying that their new growth projections would include notable markdowns but not a recession.
“[This] is a call to respond wisely,” said IMF managing director Kristalina Georgieva on Thursday. She added that a better balanced, more resilient world economy is within reach and that we must act to secure it.
She also went on to say that all countries must redouble their efforts to put their own houses in order.