Trade no longer driving growth as in past, IMF’s Georgieva says
International Monetary Fund Managing Director Kristalina Georgieva.
Many nations are facing weaker growth prospects and are saddled with high debt while supply chains have come under pressure due to the Covid-19 pandemic and geopolitical developments, Georgieva said remotely from the US at an IMF event in Tokyo.
“We also know trade is no longer the engine of global growth it used to be,” she said. “The new US administration is rapidly reshaping its policies on trade, taxation, public spending, deregulation and digital assets, and other governments are also recalibrating their approaches and adjusting their policies.”
Her remarks come as the global economy braces for the fallout from US President Donald Trump’s tariff campaign and retaliatory measures from targeted nations like China. This week, the president increased a levy against China and slapped tariffs on Mexico and Canada, with indirect implications for other nations in Asia.
Georgieva urged Asian nations to adjust to the changing norms by embracing the shift toward service-led growth, enhancing digitalisation and artificial intelligence and promoting greater regional integration.
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