IMF chief hopes for easing of US, China tensions to avoid hit to global economy

18/10/2025 12:25

International Monetary Fund chief Kristalina Georgieva on Friday said she hoped the U.S. and China could ease trade tensions and avoid a cutoff in the flow of rare earths to the global economy that she said would have a "material impact" on growth.



Such a scenario would exacerbate uncertainty and hurt an already weakened global growth picture, Georgieva told reporters after a meeting of the IMF's steering committee, where member countries voiced concerns about a host of risks facing the global economy.



This year's annual meetings of the IMF and World Bank took place days after a fresh flare-up in a simmering trade war between the world's two largest economies that dominated discussions among thousands of finance officials and central bankers from around the world.



The IMF on Tuesday forecast global real GDP growth at 3.2% for 2025, up from a July forecast of 3.0% and a more severe April forecast of 2.8%, saying tariff shocks and financial conditions had proven more benign than expected. That did not reflect the latest threats raised by the U.S. and China.