Next week, representatives from 191 countries will convene in Washington, D.C., to discuss trade policies and the implications of recent US-led changes in the global trade order.

Her remarks come ahead of the IMF and World Bank Spring Meetings, where rising global concerns about economic fragmentation due to protectionism and uncertainty will be addressed.

Kristalina Georgieva, managing director of the IMF, warned that escalating US tariff actions are likely to lead to higher inflation and slower global growth in 2025, although a global recession is not imminent.

Georgieva emphasized that prolonged uncertainty regarding tariffs could lead to increased financial market stress, warning of the repercussions of dollar depreciation and rising US bond yields.

She recommended that China shift its growth model towards boosting private consumption and reducing reliance on exports, while the EU should deepen its internal market integration.

Georgieva stressed that uncertainty makes it difficult for companies to plan investments, leading to delayed decisions and slowing economic momentum.

She explained that tariffs disrupt global trade flows and create inefficiencies in supply chains, ultimately impacting the cost of goods across multiple countries.

Georgieva noted that economies are currently burdened with higher public debt compared to previous years, complicating their ability to manage inflation effectively.

The IMF's forthcoming World Economic Outlook, set to be released on April 22, is expected to downgrade global growth forecasts while raising inflation expectations for several countries.

She also highlighted the need for the US to reduce its federal government debt and implement significant budget reforms to enhance economic resilience.

Recent US tariff plans under President Trump have led to significant market turbulence, reminiscent of levels seen during the COVID-19 pandemic.

Georgieva called for a renewed commitment to open trade and cooperation among major economies, advocating for the reduction of both tariff and non-tariff barriers.