IMF Managing Director “Trade conflicts must be resolved quickly…Cost of uncertainty is enormous”

Georgieva IMF President (Source: AP)

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), urged countries to resolve trade conflicts promptly. At the World Bank·IMF annual meeting in Washington, D.C. on the 24th (local time), she emphasized, “One of the most serious threats hanging over the global economy is the continued trade uncertainty,” adding, “The cost of this uncertainty is very high and must be resolved as quickly as possible.”

President Georgieva warned, “If trade agreements are delayed, companies postpone investments, and households reduce consumption. This situation further weakens the already sluggish global growth outlook.” She then stated that “trade policy agreements between major economic powers are not a choice but a necessity,” declaring that openness and cooperation are the most urgent tasks.

She also identified structural imbalances in countries as one of the major causes of conflict. She pointed out that China needs “to promote private consumption and shift to a service-centered economy,” and for Europe, it’s time “to complete the EU single market and remove internal barriers.”

Finally, she added, “Now is the time for all countries to step up efforts to lower tariff and non-tariff barriers,” emphasizing the need to guard against the spread of protectionism.