WASHINGTON (Realist English). International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Friday that she hopes the United States and China will reach an agreement to avoid cutting off the global supply of rare earth minerals, warning that such restrictions could have a “material impact” on global economic growth.
Speaking at a press conference during the IMF and World Bank annual meetings in Washington, Georgieva said tensions between the world’s two largest economies risk deepening economic uncertainty and slowing recovery.
“There is still a sense of anxiety because the performance of the world economy is less than we need it to be,” she said. “And there is a very dark cloud of uncertainty still hanging over our heads — uncertainty that has now become the new normal.”
Georgieva cautioned that any disruption in the flow of rare earths — key materials for high-tech industries, renewable energy, and defense — would exacerbate supply chain instability and hurt both advanced and developing economies.
The IMF chief’s remarks come amid reports that Washington and Beijing are considering new export and import restrictions on critical minerals as part of their escalating strategic competition in technology and defense sectors.
