IMF says trade wars are messing with growth

The IMF warns countries about growing trade problems hurting world markets. Their leader, Kristalina Georgieva, says next week's economic report will show lower numbers but not a recession. She compared recent tariff changes to water that boiled over after bubbling for ages, showing how trust between nations has fallen apart. Small countries feel caught between China, Europe, and the United States, which import most goods despite having less trade compared to their economies.

Modern supply chains make things complex because one product might face taxes from many different countries. This creates uncertainty for ships, investments, and markets. Though tariffs raise money for governments, they shift business costs around, with importers paying through smaller profits. Consumers also pay higher prices right away, even if new jobs might come later. Protected industries become less productive over time as they ask for special treatment instead of competing fairly.

The IMF tells countries they must make changes fast to handle these shocks. Many nations already carry heavy debt burdens, which makes everything harder. Central banks need independence to control prices based on real information. Countries should let their exchange rates adjust naturally during tough times. Those with impossible debts might need restructuring help from the IMF.