International Monetary Fund President Kristalina Georgieva issued a warning Thursday on the eve of Washington's spring meeting.Global economy will slow down due to US-led global trade "restart", but she also emphasized thatThe global economy will not fall into recession.

Georgieva pointed out that the wave of protectionism driven by US President Trump's threat of tariffs will trigger high uncertainty, leading to slowing economic activity and curbing productivity growth. “Trade continues, but disruptions bring costs,” she said in her speech, “our new economic growth forecast will include a significant downward adjustment, but there will be no recession. "However, she added that some countries may face faster inflation.

The IMF plans to release new economic forecasts in its World Economic Outlook report next Tuesday. Meanwhile, finance ministers and central bank governors are gathering in Washington — co-sponsored by the World Bank — to assess the turbulent global economic environment arising from Trump’s attempt to reshape the global trading system and isolate major competitors.

If the IMF further downgrades its growth forecast for 2025, it will be another blow after the recent cuts to the economic outlook by other institutions. For example, a report released by the World Trade Organization (WTO) on Wednesday showed that global commodity trade is expected to shrink this year, mainly due to the U.S. trade policy.

This week, economists at HSBC Holdings Plc also lowered their forecasts for global economic growth this year and next, down from 2.5% and 2.7% to 2.3% respectively.

The growth risks posed by Washington's trade policy mark a sharp contrast with the IMF's optimistic expectations at the beginning of the year. At that time, based on the unexpected expansion of the US economy, the IMF raised its forecast for global GDP growth in 2025 to 3.3% on the eve of Trump's inauguration.

Georgieva said in her speech that trade tensions were “It is reaching the boiling point”, which is mainly due to weaker trust among countries and a general decline in confidence in favor of globalization.”Global economic integration has lifted large numbers of people out of poverty and made the entire world richer. But not everyone benefits from it,” she mentioned the inflation problems caused by shifts in jobs to low-wage areas and supply chain disruptions, “many blame the international economic system for the sense of injustice in life. ”

Georgieva said just seven months into her second five-year term that countries should seize this opportunity to take policy measures to create a "more balanced and more resilient" global economy.

She specifically pointed out that Europe should further deepen integration, especially the capital market, and follow Germany's example of increasing national defense and infrastructure spending; and for the United States, the "core macroeconomic policy challenge" is to reduce government debt levels.

“The key to seizing the current opportunity is to concentrate all your energy not to maintain the old order, but to build a new future,” she concluded.