International Monetary Fund (IMF) Managing Director Kristalina Georgieva presents the newly released Global Policy Agenda at a press conference during the 2025 Spring Meetings of the World Bank Group and IMF in Washington, D.C., the United States, on April 24, 2025. International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday that significant shifts in trade policies have led to a sharp increase in uncertainty, calling on countries to engage in constructive cooperation and resolve trade disputes promptly. (Xinhua/Xie E)

WASHINGTON, April 24 (Xinhua) -- International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday that significant shifts in trade policies have led to a sharp increase in uncertainty, calling on countries to engage in constructive cooperation and resolve trade disputes promptly.

"Major trade policy shifts have spiked uncertainty off the charts, accompanied by tighter financial conditions and high market volatility, " Georgieva made the remarks at a press conference during the 2025 Spring Meetings of the World Bank Group and IMF.

"Simply put, the world economy is facing a new and major test, and it faces it with policy buffers depleted by the shocks of recent years," she said.

In the newly released Global Policy Agenda, the IMF chief laid out three overarching priorities. "First and most urgent, for countries to work constructively, to resolve trade tensions as swiftly as possible, preserving openness and removing uncertainty," Georgieva said.

"A trade policy settlement among the main players is essential, and we are urging them to do it swiftly, because uncertainty is very costly," she said.

"All countries should seize this moment to lower their trade barriers, both tariff and non tariff," she added.

Secondly, the IMF chief urged countries to strive to safeguard economic and financial stability, emphasizing that the best way to achieve this goal is by getting their own house in order. On fiscal policy, most countries need to rebuild buffers and ensure sustainability. Regarding monetary policy, central banks must strike a delicate balance between supporting growth and containing inflation, she said, stressing that central bank independence is critical for maintaining credibility.

Thirdly, she called on countries to actively promote growth-oriented reforms to lift productivity. These reforms, she said, can create a good business environment, reform labor markets, foster conditions for innovation, and, in a world of rapid technological advancement, provide opportunities for countries to fully harness these investments to benefit their people.

According to the latest World Economic Outlook (WEO) released Tuesday, the IMF downgraded its global growth forecast in 2025 to 2.8 percent, a significant 0.5 percentage point decrease from its January projection.

Noting that the tariffs alone are a "major negative shock," the IMF said in the report that the "unpredictability" with which these measures have unfolded negatively impacts economic activity and the outlook. ■

International Monetary Fund (IMF) Managing Director Kristalina Georgieva (R, Rear) speaks at a press conference during the 2025 Spring Meetings of the World Bank Group and IMF in Washington, D.C., the United States, on April 24, 2025. International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday that significant shifts in trade policies have led to a sharp increase in uncertainty, calling on countries to engage in constructive cooperation and resolve trade disputes promptly. (Xinhua/Xie E)

International Monetary Fund (IMF) Managing Director Kristalina Georgieva (R) speaks at a press conference during the 2025 Spring Meetings of the World Bank Group and IMF in Washington, D.C., the United States, on April 24, 2025. International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday that significant shifts in trade policies have led to a sharp increase in uncertainty, calling on countries to engage in constructive cooperation and resolve trade disputes promptly. (Xinhua/Xie E)

International Monetary Fund (IMF) Managing Director Kristalina Georgieva (R, Rear) speaks at a press conference during the 2025 Spring Meetings of the World Bank Group and IMF in Washington, D.C., the United States, on April 24, 2025. International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday that significant shifts in trade policies have led to a sharp increase in uncertainty, calling on countries to engage in constructive cooperation and resolve trade disputes promptly. (Xinhua/Xie E)

International Monetary Fund (IMF) Managing Director Kristalina Georgieva speaks at a press conference during the 2025 Spring Meetings of the World Bank Group and IMF in Washington, D.C., the United States, on April 24, 2025. International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday that significant shifts in trade policies have led to a sharp increase in uncertainty, calling on countries to engage in constructive cooperation and resolve trade disputes promptly. (Xinhua/Xie E)

International Monetary Fund (IMF) Managing Director Kristalina Georgieva speaks at a press conference during the 2025 Spring Meetings of the World Bank Group and IMF in Washington, D.C., the United States, on April 24, 2025. International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday that significant shifts in trade policies have led to a sharp increase in uncertainty, calling on countries to engage in constructive cooperation and resolve trade disputes promptly. (Xinhua/Xie E)

International Monetary Fund (IMF) Managing Director Kristalina Georgieva (R) speaks at a press conference during the 2025 Spring Meetings of the World Bank Group and IMF in Washington, D.C., the United States, on April 24, 2025. International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday that significant shifts in trade policies have led to a sharp increase in uncertainty, calling on countries to engage in constructive cooperation and resolve trade disputes promptly. (Xinhua/Xie E)