Latest news with #GFSR
Fibre2Fashion
26-04-2025
- Business
- Fibre2Fashion
US tariffs key point of friction at IMF-World Bank Spring Meetings
A key point of friction at the annual Spring Meetings of the International Monetary Fund (IMF) and the World Bank—marked by a sombre tone this year—was the recent surge of US tariffs, according to an article on the World Economic Forum (WEF) website. Concerns and reduced growth projections were based on the recent surge of tariffs and protectionism, and there was debate about the role of international financial institutions in addressing climate change. A key point of friction at the annual IMF-World Bank Spring Meetings was the recent surge of US tariffs, according to an article on the World Economic Forum website. The role of international financial institutions in addressing climate change was also debated. At the meetings, the IMF highlighted the need for proactive debt restructuring and fiscal reforms to ensure long-term sustainability. "Uncertainty is really bad for business. So, the sooner there is this cloud that is hanging over our heads is lifted, the better for prospects for growth," IMF managing director Kristalina Georgieva said, emphasising the urgency of resolving related trade disputes. At the meetings, the IMF highlighted the need for proactive debt restructuring and fiscal reforms to ensure long-term sustainability. However, there was a consensus at the meetings on the need for multilateral cooperation to navigate the complex challenges ahead. Ahead of the sessions, Georgieva cautioned that global economic resilience is under threat from intensifying trade distortions, a weakening multilateral system and renewed market volatility. The IMF has already downgraded its global growth forecast, citing tariff-related disruptions, and the World Bank has expressed similar concerns. The IMF's latest Global Financial Stability Report (GFSR) shows that global financial stability risks have grown significantly, driven by tighter financial conditions and heightened trade and geopolitical uncertainties. "A trade policy settlement among the main players is essential, and we are urging them to do it swiftly, because uncertainty is very costly," Georgieva told a press conference. Fibre2Fashion News Desk (DS)
Business Recorder
23-04-2025
- Business
- Business Recorder
US tariffs have increased financial stability risks: IMF
WASHINGTON: Donald Trump's stop-start tariff rollout has 'significantly' increased global financial stability risks, the International Monetary Fund said in a new report published Tuesday. The IMF's Global Financial Stability Report (GFSR) was published as global financial leaders gather for meetings in Washington under the cloud of policy uncertainty triggered by Trump's tariff announcements. The administration's tariff plans 'triggered a bout of policy uncertainty,' which was only exacerbated by the retaliatory measures unveiled by China, the IMF said. Against this backdrop, the GFSR's authors found that 'global financial stability risks have increased significantly, driven by tighter global financial conditions and heightened economic uncertainty.' The Fund identified three vulnerabilities to financial stability: High valuations in 'key' equity and corporate debt markets; highly-leveraged financial institutions including some hedge funds; and the possibility of 'further turbulence' in sovereign bond markets in countries with high debt levels. The bond markets became an unlikely cause for concern in the United States earlier this month, with yields jumping sharply after Trump's tariffs went into effect. The risk, however, extends far beyond the decisions taken in Washington, with higher bond yields in countries considered a safe bet feeding through into even higher borrowing costs elsewhere. 'Emerging market economies already facing the highest real financing costs in a decade may now need to refinance their debt and fund fiscal spending at higher costs,' the IMF said. The Fund also warned that geopolitical risk — including military conflicts — could raise risks to financial stability. 'Given high levels of leverage in the financial system and growing interconnectedness between nonbank financial intermediaries and banks, sufficient levels of capital and liquidity in the banking sector remain the anchor of global financial stability,' the IMF said.
Yahoo
22-04-2025
- Business
- Yahoo
IMF: Trump tariffs slow down global economic growth
US President Donald Trump's tariffs have "significantly" pushed the global economy toward a downshift, reducing the global economic growth forecast for 2025 to 2.8%, the International Monetary Fund (IMF) said in a new report published on Tuesday. The global growth forecast was expected to stay at 3.1% in 2024 and rise to 3.3% in 2025, said IMF economic counsellor Pierre-Olivier Gourinchas. The IMF's Global Financial Stability Report (GFSR) was "put together under exceptional circumstances," following Trump's announcement in April, Gourinchas said. China's retaliatory measures toward the US means lower bilateral trades, which is "weighing down on global trade growth," Gourinchas told the Reuters news agency. The US' especially high levies on China and Beijing's retaliatory measures mean lower bilateral trade, which is "weighing down on global trade growth," Gourinchas told the Reuters news agency. The GFSR's authors found that "global financial stability risks have increased significantly, driven by tighter global financial conditions and heightened economic uncertainty." The ripple effects of Trump's decisions extend beyond Washington. Rising bond yields have increased in countries previously considered safe choices, driving up borrowing costs globally, the IMF reported. "Emerging market economies already facing the highest real financing costs in a decade may now need to refinance their debt and fund fiscal spending at higher costs," the global lender said. The IMF also warned that global tensions, including wars and military conflicts, could make the financial system even more unstable. The IMF projects that growth would slow to 0.8% in the Euro area in 2025, and to 1.2% in 2026. Both projections are some 0.2 percentage points down from January. Germany was set to see economic growth of 0.0% in 2025 and 0.9% in 2026, the IMF said, cutting the European Union's largest economy's growth forecast by 0.3 and 0.2 percentage points, respectively. IMF financial counselor Tobias Adrian warned that the financial conditions in the past three weeks since Trump first announced the tariffs has "an outsized impact on those more vulnerable countries." The global lender expected less-developed nations to fare worse, projecting a shrinkage of Mexico's economy to 0.3% this year, down from a previous projection of 1.4% growth. Mexico rejected this projection as too pessimistic. "We do not know what it is based on. We do not agree," President Claudia Sheinbaum said. "We have a plan to strengthen the Mexican economy." Mexico was among the first countries to be targeted by Trump's tariffs shortly after he took office. The IMF said its downgrade for the country reflected "weaker-than-expected activity in late 2024 and early 2025 as well as the impact of tariffs imposed by the United States, the associated uncertainty and geopolitical tensions, and a tightening of financing conditions." Edited by: Rana Taha
NDTV
22-04-2025
- Business
- NDTV
Trump Tariffs Have Increased Financial Stability Risks, Says Global Body
Washington: US President Donald Trump's stop-start tariff rollout has "significantly" increased global financial stability risks, the International Monetary Fund said in a report published Tuesday. The IMF's Global Financial Stability Report (GFSR) was published as world financial leaders gather for meetings in Washington under the cloud of policy uncertainty triggered by Trump's tariff announcements. The administration's tariff plans "triggered a bout of policy uncertainty," which was only exacerbated by the retaliatory measures unveiled by China, the IMF said. Against this backdrop, the GFSR's authors found that "global financial stability risks have increased significantly, driven by tighter global financial conditions and heightened economic uncertainty." Speaking to reporters on Tuesday, IMF financial counselor Tobias Adrian identified three vulnerabilities to financial stability. These were: High asset valuations in key equity and corporate debt markets; highly-leveraged financial institutions including some hedge funds; and the possibility of additional turbulence in sovereign bond markets in countries with high debt levels. "The tightening of financial conditions that we observed in the last three weeks has an outsized impact on those more vulnerable countries," he added. The bond markets became an unlikely cause for concern in the United States earlier this month, with yields jumping sharply after Trump's tariffs went into effect. The risk, however, extends far beyond the decisions taken in Washington, with higher bond yields in countries considered a safe bet feeding through into even greater borrowing costs elsewhere. "Emerging market economies already facing the highest real financing costs in a decade may now need to refinance their debt and fund fiscal spending at higher costs," the IMF said. The Fund also warned that geopolitical risk -- including military conflicts -- could raise risks to financial stability. "Given high levels of leverage in the financial system and growing interconnectedness between nonbank financial intermediaries and banks, sufficient levels of capital and liquidity in the banking sector remain the anchor of global financial stability," the IMF said. Adrian also addressed the independence of the US Federal Reserve, following repeated attacks on the bank -- and its chair Jerome Powell -- from President Trump. "We have seen time and time again that central bank independence is an important foundation for central banks to achieve their goals, which are primarily price stability and financial stability," he said. "We do advise our membership to have a degree of independence that is aimed at achieving those overarching goals," he added.
Time of India
22-04-2025
- Business
- Time of India
Trump tariffs have increased financial stability risks: IMF
US President Donald Trump's stop-start tariff rollout has "significantly" increased global financial stability risks, the International Monetary Fund said in a report published Tuesday The IMF's Global Financial Stability Report (GFSR) was published as world financial leaders gather for meetings in Washington under the cloud of policy uncertainty triggered by Trump's tariff announcements. The administration's tariff plans "triggered a bout of policy uncertainty," which was only exacerbated by the retaliatory measures unveiled by China, the IMF said. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like War Thunder - Register now for free and play against over 75 Million real Players War Thunder Play Now Undo Against this backdrop, the GFSR's authors found that "global financial stability risks have increased significantly, driven by tighter global financial conditions and heightened economic uncertainty." Speaking to reporters on Tuesday, IMF financial counselor Tobias Adrian identified three vulnerabilities to financial stability. Live Events These were: High asset valuations in key equity and corporate debt markets; highly-leveraged financial institutions including some hedge funds; and the possibility of additional turbulence in sovereign bond markets in countries with high debt levels. "The tightening of financial conditions that we observed in the last three weeks has an outsized impact on those more vulnerable countries," he added. The bond markets became an unlikely cause for concern in the United States earlier this month, with yields jumping sharply after Trump's tariffs went into effect. The risk, however, extends far beyond the decisions taken in Washington, with higher bond yields in countries considered a safe bet feeding through into even greater borrowing costs elsewhere. " Emerging market economies already facing the highest real financing costs in a decade may now need to refinance their debt and fund fiscal spending at higher costs," the IMF said. The Fund also warned that geopolitical risk -- including military conflicts -- could raise risks to financial stability. "Given high levels of leverage in the financial system and growing interconnectedness between nonbank financial intermediaries and banks, sufficient levels of capital and liquidity in the banking sector remain the anchor of global financial stability," the IMF said. Adrian also addressed the independence of the US Federal Reserve, following repeated attacks on the bank -- and its chair Jerome Powell -- from President Trump. "We have seen time and time again that central bank independence is an important foundation for central banks to achieve their goals, which are primarily price stability and financial stability," he said. "We do advise our membership to have a degree of independence that is aimed at achieving those overarching goals," he added.
