‘Synchronized decline’: IMF chief warns of slowdown in 90% world, India to be hit hard
Washington DC (USA) | Jagran News Desk: International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Tuesday warned of an ‘economic slowdown in 2019’ that could affect 90 per cent of world’s economies including India.
Georgieva, who was speaking at her first speech at the helm of the multilateral organisation, pointed out that the widespread deceleration means that growth in 2019-20 will fall to its "lowest rate" since the beginning of the decade.
“Two years ago, the global economy was in a synchronized upswing. Measured by GDP, nearly 75 per cent of the world was accelerating. The global economy is now in a synchronized slowdown. In 2019, we expect slower growth in nearly 90 per cent of the world,” she said in her maiden speech at IMF.
“In the United States and Germany, unemployment is at historic lows. Yet across advanced economies, including in the US, Japan, and especially the euro area, there is a softening of economic activity. In some of the largest emerging market economies, such as India and Brazil, the slowdown is even more pronounced this year,” she added.
Georgieva further said that global trade has come to a ‘near standstill’. She also said that currencies are once again in the spotlight and Disputes now extend between multiple countries and into other critical issues.
“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 said.
The new IMF chief further warned that ‘everyone loses in a trade war’ and the world needs to work together to find a ‘long lasting solution’.
“Everyone loses in a trade war. We need to work together, now, and find a lasting solution on trade,” she said.
(With ANI inputs)
Posted By: Aalok Sensharma