IMF Managing Director: "Trade Can No Longer Drive Global Economic Growth as in the Past"

Supply Chains Threatened by Overlapping COVID-19 and Geopolitical Factors

"Trade is no longer the engine driving global growth as it once was."

Yonhap News

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), spoke remotely at an IMF event held in Tokyo, Japan on the 5th, diagnosing that many countries' supply chains are being threatened due to the COVID-19 pandemic and geopolitical situations.

Georgieva's remarks came amid U.S. President Donald Trump's ruthless tariff policies directed at the world, with retaliatory tariffs imposed by other countries in response.

Georgieva pointed out that trade no longer drives global economic growth at the same level as in the past, and that policy changes by the Trump administration are triggering responses from other countries.

She said, "The new U.S. administration is rapidly reshaping policies on trade, taxation, public spending, deregulation, and digital assets, and governments of other countries are also readjusting their approaches and revising policies."

She also urged Asian countries to adapt to changing norms by embracing a shift toward service-led growth, strengthening digitalization and artificial intelligence (AI) sectors, and promoting regional integration.

He said, "On the surface, it may seem that the world is moving away from global integration, but in reality, regional cooperation is strengthening," adding, "In Asia, more than half of trade occurs within the Asian region, and foreign direct investment (FDI) is similarly centered within the region."

This content was produced with the assistance of AI translation services.