Hetmantsev said that the IMF considers the loss of trust between countries to be the main threat to the world economy

Head of the Parliamentary Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev reported, that the annual Spring Meetings of the International Monetary Fund and the World Bank will begin next week in Washington. On the eve of these events, the head of the IMF, Kristalina Georgieva, made a speech in which she outlined the main challenges facing the world economy.

As Hetmantsev noted, Georgieva called her speech “Toward a better balanced and more sustainable world economy.” In it, she emphasized that although six months ago there was talk of a certain economic stability, now it is again under threat – this time due to a deep reset of the global trade system.

According to Georgiyeva, the world has found itself in a situation where the main problem has become the erosion of trust both in the multilateral system in general and between countries. While economic globalization has lifted millions out of poverty, not everyone has felt the benefits. This, in her opinion, has reinforced the rhetoric of injustice, when some countries believe that they are following the rules, while others are manipulating the system.

In addition, Georgieva emphasized a new trend — the reassessment of national security in economic policy. According to her, in a multipolar world, the place of production is more important than the price of a product. Hence the return to the concept of self-sufficiency, particularly in strategic industries: from chips to steel.

Hetmantsev also conveyed the key consequences that Georgieva emphasized:

• Return of tariffs. The U.S. weighted average tariff rate, she said, has reached levels last seen generations ago, and corresponding moves by other countries are only adding to global tensions.
• Implications for smaller economies. In a situation of confrontation between the giants – the USA, China, the EU – it is the small countries that feel the spillover effect the most.
• Three main challenges. Georgieva singled out: the growth of uncertainty, which paralyzes investment decisions; inhibition of economic growth due to high tariffs; long-term productivity declines due to protectionism that weakens competition.

As Hetmantsev emphasized, these theses will be an important part of the discussions during the spring meetings in Washington, and constitute a clear warning: the world economy is entering a new phase of tension, where trust, openness and strategic planning will be key to survival and growth.