Resolve trade tensions, maintain stability for sustainable global growth: IMF

The International Monetary Fund (IMF) has urged countries to resolve trade disputes, maintain financial stability, and implement key reforms to ensure sustainable global economic growth.

In its latest assessment, the IMF said the world economy stands at a crossroads. Despite resilience over the past five years, rising trade tensions and growing policy uncertainty have made long-term growth increasingly challenging. Policymakers now face tighter financial conditions, heightened market volatility, and weakened policy buffers after multiple crises.

The IMF outlined three urgent priorities: easing trade frictions through fair, rules-based systems; strengthening fiscal discipline with credible medium-term plans; and advancing structural reforms to enhance productivity.

It also recommended timely and targeted support for vulnerable groups affected by reforms and urged central banks to remain vigilant against inflation.

The Fund called for renewed international cooperation to correct global imbalances and stabilise capital flows. It stressed that while the future remains uncertain, sound, well-planned policies can reduce risks and secure sustainable development.