IMF deputy head warns world to avoid global trade war

Published On Oct 23, 2024, 9:42 PM

The IMF warns that the global economy could contract significantly (up to 7%) if major economies engage in a broad-based trade war, particularly citing potential tariffs from the U.S. under Trump’s administration. This could equate to losing the size of both the French and German economies. Additionally, the IMF emphasizes the need for governments to rebuild fiscal buffers in anticipation of future economic crises and highlights the recent soft landing of the world economy from inflation without a major increase in unemployment.