Newly appointed IMF (International Monetary Fund) chief Kristalina Georgieva said that the world economy is going through a “synchronized slowdown”. She further added that the effect of the slowdown would be more pronounced in emerging large economies like India and Brazil.
The global economy is now in a synchronized slowdown, says Managing Director @KGeorgieva in her speech ahead of the October 15-20, 2019 Annual #IMFMeetings. https://t.co/z2BXAa54yB pic.twitter.com/7Fk5L0t835— IMF (@IMFNews) October 8, 2019
90% of the world economy is expected to face the brunt of the slowdown this year. Georgieva added that the growth of the global economy in 2019 would be lowest since the start of the decade.
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Georgieva Pointed out that uncertainties like trade tensions, Brexit and geopolitical tensions are the cause behind this slowdown. Trade tensions could result in “substantial weakening” of manufacturing and investment activity, and could subsequently affect services and consumption, said the IMF chief.
She called for a coordinated response at the global level and warned that the current rifts could lead to “changes that last a generation”, including “broken supply chains, siloed trade sectors.