The trade war is rocking economies. Get your ‘houses in order,’ IMF urges

The International Monetary Fund is forecasting slower global growth and urges countries to get their 'houses in order,' though it notes a global recession is unlikely.

As the International Monetary Fund (IMF) projects slower growth and higher inflation for some countries, the organization’s head has a stark warning to all countries: get your “houses in order.”

The warning by managing director Kristalina Georgieva comes as the IMF is set to release its World Economic Outlook next Tuesday, which she said will show that though there will be “notable markdowns” in growth, there won’t be a recession.

That doesn’t mean, however, that countries won’t face difficulties.

“All countries must redouble efforts to put their own houses in order,” she said in the text of her speech in the U.S on Thursday. “In a world of higher uncertainty and frequent shocks, there is no room for delay in reforms to enhance economic and financial stability and improve growth potential.”

The comments come three months into the second term of U.S. President Donald Trump, whose protectionist policies and widespread tariffs have rocked world markets and spurred concerns of a potential global recession.

Georgieva’s remarks noted the issues that have come in recent months.

Namely, she said “uncertainty is costly,” saying the cost of one item can be impacted by tariffs in dozens of countries and lead to the postponement of investment decisions, volatility in financial markets, and even questions about which ports ships should sail to.

She went on to say that protectionism “erodes productivity over the long run, especially in smaller economies.”