The IMF warns of a decentralization in the global economy
About 90% of the countries in the world are in a synchronized economic slowdown
The new managing director of the International Monetary Fund (FMI), Kristalina Georgieva, during her first speech at the head of the multilateral organization warned that 90% of countries experience a slowed synchronized economy, throwing numbers that reflect a complex situation, also meaning that this year’s growth will fall at its lowest rate.
This valuation offered by the Bulgarian economist was formulated one week before the start of the joint Annual Assembly of the FMI and the World Bank (WB), in which both institutions will present their economic projections and congregate the main ministers of economy and central bankers of all the world.
Trade war Washington – Beijing
In his speech, Georgieva attributed the commercial disputes to the war between Washington and Beijing, in addition to the different geopolitical tensions and the possible impact of Brexit. He also said that the commercial war between the US and China “is taking its toll” in global economic activity in general, and in the manufacturing sector in particular.
The economist said that the growth of world trade “has stopped almost completely.” He also added that due to commercial tensions “global manufacturing activity and investment have weakened substantially. There is a serious risk that services and consumption may soon be affected.”
The highest authority of the Monetary Fund explained that the current divisions could lead to changes that can last a generation, causing broken supply chains or isolated commercial sectors.
K.Villarroel
Source: abc
