Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), on the 24th (local time) urged for swift trade agreements, noting the significant negative impact of trade conflicts between nations on the global economy.
Georgieva emphasized during the World Bank (WB) and IMF annual meeting held in Washington, D.C., that “it is urgent for countries to constructively cooperate to resolve trade conflicts as quickly as possible, maintain openness, and eliminate uncertainty.”
Georgieva said, “An agreement on trade policies among major countries is essential, and we urge nations to reach an agreement promptly, as the expense of uncertainty is very high.”
She explained, “This cannot be emphasized enough: without certainty, corporations do not invest, households tend to save rather than spend money, and this further weakens the already frail growth outlook.”
Georgieva urged that the ‘imbalances’ that cause conflicts among major economies must be addressed.
She argued that “some countries, like China, need to act to promote private consumption and must embrace the transition from manufacturing to service economies.”
Regarding Europe, she stated, “It is time to complete the single market,” calling for the elimination of barriers that impede internal trade within the European Union (EU).
She said, “All countries should take this moment to lower trade barriers, including tariffs and non-tariffs.”