IMF chief urges 'trade integration' as global inflation set to fall 3.8% this year

The IMF chief says global inflation will fall in the coming year and trade integration is needed.

The International Monetary Fund (IMF)'s chief, Kristalina Georgieva, announced on Monday, February 2, 2026, that global inflation is expected to fall to 3.8% this year and to 3.4% in 2027, helped by softer demand and lower energy prices.

At the Annual Arab Fiscal Forum in Dubai, the IMF's managing director informed that global growth this year has held up remarkably well amid profound shifts in geopolitics, trade policy, technology, and demographics.

Therefore, Georgieva also called for more trade integration as unilateral trade agreements are seen to increase.

"In the world of trade fragmentation, more trade integration is absolutely paramount," she added.

"What we have seen this year is that trade did not go down the way we feared it would. In fact, trade is growing slightly slower than global growth,” Georgieva said.

The IMF sees inflation steadily moderating over the next two years but emphasizes that bolstering international trade cooperation is important/crucial to sustain this trend and strengthen global economic growth.

The IMF chief noted that overall global economic growth has held up "remarkably well" despite ongoing geopolitical tensions and economic shifts, but the new report reflects weaker consumer demand and low energy prices compared with recent highs.

Trade integration is the key:

Georgieva warned that rising unilateral trade agreements and trade fragmentation could weaken global economic resilience.

The latest assessment came after global leaders, economists, and policymakers opened new debate amid tensions in geopolitics, trade, and technological change.

Additionally, the IMF chief emphasized that better trade integration, meaning more cooperation and fewer barriers across countries, is absolutely paramount to support global growth and stability.