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70% of Nations to experience slowdown in growth—IMF

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The International Monetary Fund (IMF) has said that the global economy is in a delicate moment, with 70 per cent of the nations expected to experience a slowdown in growth this year.

Managing Director (MD) of the International Monetary Fund (IMF), Ms. Christine Lagarde, disclosed this while addressing the American Chamber of Commerce, in Washington DC, USA.

IMF Lagarde’s address was the “Curtain Raiser” speech, ahead of the World Bank/IMF Spring Meetings, which would open in Washington DC, next week.

She said, “A year ago, I said, ‘the sun is shining, fix the roof.” Six months ago, I pointed to clouds of risk on the horizon. Today, the weather is increasingly ‘unsettled’. What do I mean by that? In January, the IMF projected global growth for 2019 and 2020 at around 3 ½ percent, less than in the recent past, but still reasonable. It has since lost further momentum, as you will see from our updated forecast next week. “Only two years ago, 75 percent of the global economy experienced an upswing. For this year, we expect 70 percent of the global economy to experience a slowdown in growth. “So you see what I mean by “unsettled”. Indeed, the global economy is at a “delicate moment”.

However, she ruled out a global recession in the near term.

The IMF boss blamed the slowing global economy on trade tensions and financial tightening and called for attention of countries to three areas of policy action, which require to be handled with care, with a view to avoiding policy missteps.

 She said, “I see three mutually reinforcing areas of action: In domestic policies; in cross-border policies; and in coordinated efforts to tackle the major global challenges we all face.”

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