Commercial tariff uncertainty is “literally outside the graphics” but there will be no global recession, said the International Monetary Fund (IMF).
The international economic group declared in its forecast for the global economy that global equity prices have dropped “as the trade tensions evassed” and warned against “erosion of confidence” between countries.
However, he prevented a global recession from predicting, saying that “our new growth projections will include notable brands, but not a recession”.
The comments come when managers and companies react to the prices of the “Liberation Day” of US President Donald Trump announced on April 2.
The world’s stock markets have dropped after the announcement and many have not recovered since – with the FTSE 100 of the largest companies listed in the United Kingdom, still 4.6% lower than one month.
Meanwhile, the predictions of a global recession have increased while businesses reduce spending and investment in the midst of uncertainty and some countries respond to Trump with their own prices.
On Wednesday, the World Trade Organization (WTO) is planning that world trade will decrease this year due to Trump prices.
It follows similar comments from the Bank of England, which declared that the increase in trade tensions of prices “contributed to a significant increase in the risk for global growth” and financial stability.
Meanwhile, the European Central Bank (ECB) said Thursday that it had reduced its key interest rate “due to the increase in trade tensions”.
But the prospects of the IMF are more pink, however. “(This) is a call to answer judiciously,” the director general of the IMF on Thursday said Kristalina Georgieva.
“A more balanced and more resilient global economy is at hand. We must act to secure it.”
She added that “all countries must redouble the efforts to put their own houses” in response to uncertainty.
It specifically called on Europe to reduce “restrictions on the internal trade in services” and “deepen” its single market.
She also said that China had to increase its social security net so that there is less “precautionary economy” and said the US government should reduce its debt.
