1 day ago
9
You have a preview view of this article while we are checking your access. When we have confirmed access, the full article content will load.
Kristalina Georgieva, the managing director of the International Monetary Fund, warned in a speech that protectionism erodes productivity.
April 17, 2025, 10:00 a.m. ET
The world economy is expected to grow slower this year and experience higher inflation than previously anticipated, according to new forecasts to be released by the International Monetary Fund that will show the global fallout of the U.S. trade war.
The growth projections, to be released early next week, will offer the clearest indication to date of the damage that President Trump’s economic policies are having on global output. Since taking office in January, Mr. Trump has imposed a wide range of tariffs on most of America’s trading partners, while ratcheting levies even higher on imports from China, Canada and Mexico.
“Our new growth projections will include notable markdowns, but not recession,” Kristalina Georgieva, the I.M.F. managing director, said on Thursday in a speech ahead of the spring meetings of the I.M.F. and the World Bank. “We will also see markups to the inflation forecasts for some countries.”
Ms. Georgieva’s comments added to a growing chorus of top economic officials, including the heads of the Federal Reserve and the World Bank, who have sounded alarms this week about the potential harm that Mr. Trump’s policies could cause.
The European Central Bank on Thursday lowered interest rates, saying that “the outlook for growth has deteriorated owing to rising trade tensions.” Central bankers, finance ministers and other policymakers will gather in Washington next week as they continue to grapple with how to respond.
Ms. Georgieva was careful in her criticism of the Trump administration’s policies, which have created widespread uncertainty for businesses and are disrupting international supply chains. But she made clear her concerns about the costs of protectionism.
