The International Monetary Fund (IMF) warned governments to gear up for a possible economic storm, with the world experiencing a dismal growth.
The International Monetary Fund (IMF) warned governments to gear up for a possible economic storm, with the world experiencing a dismal growth. “The bottom line — we see an economy that is growing more slowly than we had anticipated,” said IMF Managing Director Christine Lagarde at the World Government Summit in Dubai.
There are growth risks emanating from “trade tensions and tariff escalations, financial tightening, uncertainty related to (the) Brexit outcome and spillover impact and an accelerated slowdown of the Chinese economy”, she said.
The trade tension between China and United States is already impacting global growth. Then there is a deadlock over Brexit, she said.
Last month, the IMF lowered its global economic growth forecast for this year from 3.7 per cent to 3.5 per cent. Lagarde cited what she called “four clouds” as the main factors undermining the global economy and warned that a “storm” might strike.
“We have no idea how it is going to pan out and what we know is that it is already beginning to have an effect on trade, on confidence and on markets,” Lagarde said, warning governments to avoid protectionism. “When there are too many clouds, it takes one lightning (bolt) to start the storm,” she added.
Source: Financial Express, AFP