New Delhi, October 09: Warning of an economic slowdown in 2019 in 90 per cent of the world at the first speech at helm of the multilateral organization, the new managing director of the International Monetary Fund, Kristalina Georgieva on Wednesday claimed that the global economy is now in a synchronized slowdown.
"This widespread deceleration means that growth this year will fall to its lowest rate since the beginning of the decade," the Bulgarian economist, who took over from Christine Lagarde, who is slated to become the president of the European Central Bank explained.
Georgieva made this assessment one week ahead of the joint Annual Meeting between the IMF and World Bank in which both institutions will present their economic projections in a gathering of top central bankers and economy ministers. The IMF chief warned that the World Economic Outlook for 2019 and 2020 reflects a complex situation compared to the previous figures presented in July in Chile.
"The precarious outlook presents challenges for countries already facing difficulties - including some of the Fund's program countries. China's accelerated growth is experiencing a gradual decrease", she added. Georgieva meanwhile blamed trade disputes, such as the commercial war between Washington and Beijing, for global economic sluggishness, in addition to geopolitical tensions, such as Brexit, that have sparked uncertainty.
"Global trade growth has come to a near standstill. Even if growth picks-up in 2020, the current rifts could lead to changes that last a generation - broken supply chains, siloed trade sectors, a 'digital Berlin Wall' that forces countries to choose between technology systems", she warned.
The economist said the main goal should now be to fix the fractures that have emerged and called for a coordinated global response."I believe we can do it. How? Start by unleashing the growth generating capacity of trade. We need to work together, now, and find a lasting solution on trade" she signed off.