The judgment of the book of commercial rules caused by the prices of President Trump will slow down economic growth in certain countries, but will not cause a global recession, said the International Monetary Fund (IMF).
There will be “notable” markings for growth forecasts, according to the director general of the financial organization, Kristalina Georgieva, in her curtain breeding speech at the IMF spring meeting in Washington.
Some nations will also see higher inflation as a result of taxes that Trump has imposed imports in the United States. At the same time, the European Central Bank said it provided less inflation of prices.
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Earlier this month, a lump sum rate of 10% was placed on all imports, while additional samples from certain countries were interrupted for 90 days. Automobile parts, steel and aluminum are however still subject to a 25% tax on their arrival in the United States.
This meant the “restart of the global trade system,” said Georgieva. “The uncertainty of trade policy is literally outside the graphics.”
The confusion on the reasons why the nations have been slapped from their specific prices, the nature of the tax of taxes and the rapid climbing of the samples between the United States and China and the turbulence of the financial markets.
“The more the uncertainty persists, the more the cost,” warned Ms. Georgieva.
“Unusual” activity on the debt markets and the government – because investors have sold dollars and the debt of the American government – “should be considered a warning,” she added.
“Everyone suffers if the financial conditions aggravate.”
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These challenges were born from a “lower starting position”, because the public debt levels are much higher in recent years due to expenses during the COVID-19 pandemic and higher interest rates, which has increased the cost of the loan.
Trade tensions are “to a large extent” due to “erosion of confidence,” said Georgieva.
This erosion, associated with jobs moving abroad and concerns about national security and domestic production, has left us in a world where “industry attracts more attention than the service sector” and “where national interests are running on global concerns”, she added.