IMF Warns of Risks from Global Imbalances and Tariffs

IMF researchers have highlighted that tariffs rarely improve current accounts and are contributing to widening global imbalances, which pose risks to growth and financial stability. According to NS3.AI, the study indicates that permanent tariffs or retaliatory measures typically do not alter saving behaviors, leaving current account positions mostly unchanged. The IMF cautions that these growing imbalances have historically preceded financial crises or sudden reversals in capital flows.