US tariffs key point of friction at IMF-World Bank Spring Meetings

Concerns and reduced growth projections were based on the recent surge of tariffs and protectionism, and there was debate about the role of international financial institutions in addressing climate change.

"Uncertainty is really bad for business. So, the sooner there is this cloud that is hanging over our heads is lifted, the better for prospects for growth," IMF managing director Kristalina Georgieva said, emphasising the urgency of resolving related trade disputes.

At the meetings, the IMF highlighted the need for proactive debt restructuring and fiscal reforms to ensure long-term sustainability.

However, there was a consensus at the meetings on the need for multilateral cooperation to navigate the complex challenges ahead.

Ahead of the sessions, Georgieva cautioned that global economic resilience is under threat from intensifying trade distortions, a weakening multilateral system and renewed market volatility. The IMF has already downgraded its global growth forecast, citing tariff-related disruptions, and the World Bank has expressed similar concerns.

The IMF's latest Global Financial Stability Report (GFSR) shows that global financial stability risks have grown significantly, driven by tighter financial conditions and heightened trade and geopolitical uncertainties.

"A trade policy settlement among the main players is essential, and we are urging them to do it swiftly, because uncertainty is very costly," Georgieva told a press conference.

ALCHEMPro News Desk (DS)