Kristalina Georgieva issued a stern warning in her first address
Kristalina Georgieva, (click here) in her first major address as head of the International Monetary Fund, painted a downbeat picture of the world economy and said a more severe slowdown could require governments to coordinate fiscal-stimulus measures.
In a speech that sets the tone for next week's annual meeting of the IMF, Georgieva said the fund will cut its growth forecast for both 2019 and 2020 in its next World Economic Outlook due October 15. In July, the fund lowered its projection to 3.2 per cent this year and 3.5 per cent next year - its fourth downgrade since last October.
Global institutions, economists and investors are blaming the US-China tariff conflict as a prime factor for slowing global growth. The trade tensions have partly caused manufacturing to tumble and weakened investment, creating a "serious risk" of spillover to other areas of the economy like services and consumption, Georgieva said in prepared remarks in Washington on Tuesday. Global trade growth is close to a standstill, she added....
