IMF warns world to avoid global trade war

IMF Deputy Managing Director Gita Gopinath warned that serious trade decoupling and extensive tariffs could result in a global GDP loss of nearly 7%, equivalent to the economies of France and Germany.

She emphasized the importance of addressing rising global government debt and urged nations to rebuild fiscal buffers during the current period of steady economic growth.

Gopinath noted the resilience of the world economy, highlighting that inflation has decreased without significantly raising unemployment, which contrasts with past trends.

She concluded that now is the time to strengthen resilience in a fragile global landscape.