Largest economies must reach agreement on trade issues to preserve openness, says IMF chief

IMF urges countries to prioritise trade settlements amid global economic uncertainty, emphasizing need for openness and level playing field.

On the eve of its Spring Meetings, the International Monetary Fund (IMF) called on countries to find a settlement on trade issues, which it said was the top priority for a multipolar world. The IMF’s new growth projections, which will be released on Tuesday (April 22, 2025), would forecast “notable markdowns” in growth and inflation markups for some countries, but they would not forecast a recession, IMF Managing Director Kristalina Georgieva said on Thursday (April 17, 2025), days ahead of the World Bank’s and IMF’s first gathering since U.S. President Donald Trump returned to the White House and announced global tariffs on goods entering the U.S.

“In trade policy, the goal must be to secure a settlement among the largest players that preserves openness and delivers a more level playing field,” Ms. Georgieva said at a curtain-raiser event, where she called for restarting a global trend of lower tariff rates while reducing non-tariff barriers to trade.

During a question answer session following her remarks, Ms. Georgieva praised parts of Mr. Trump’s agenda and outlined silver linings to the gathering clouds of trade disruptions.

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The IMF chief said Mr. Trump’s plan for deregulation would be “valuable” for the U.S. and create a “fertile environment” for businesses to succeed.

Bilateral trade negotiations that could follow the current uncertainty might result in countries that did not normally trade with each other to engage in trade, Ms. Georgieva said.

In some instances, tariff barriers could actually go down, she said, citing India as a potential example.