5 years ago

The new president of the IMF refers to the global economic slowdown warning trade disputes will worsen

1 min read
global economy

Kristalina Georgieva, the new president of the International Monetary Fund, said on October 8 that global economic growth in 2019 showed signs of slowing and that trade disputes between countries would harm the growing economy. .

Georgieva first delivered a long speech by the president of the International Monetary Fund (IMF). She said that nearly 90% of the world’s regions may face slower economic growth in 2019. The global economy has slowed down, so 2019 The growth rate is the lowest in the past 10 years.

The IMF had predicted global economic growth rates of 3.2 and 3.5 percent in 2019 and 2020, respectively, but Georgieva said the IMF would lower its forecast.

In addition, the world is also facing trade disputes. She said that the situation has already affected the economy. Global trade growth has been stagnating. It also warns that the global economy may lose $700 billion in 2020, accounting for 0.8% of the overall GDP. The overall economy of Switzerland is worse than what the IMF originally expected.

Georgieva called on countries with abundant funds to use fiscal capacity to prevent the global economy from plummeting, otherwise countries would only lose. She pointed out that spending increases in Germany, the Netherlands and South Korea, especially in infrastructure and research and development, can help boost market demand and growth potential.

She believes that many countries and regions rely on the central bank and low interest rates to support economic growth, warning that long-term low interest rates may lead investors to move to higher-risk activities.

Georgieva also mentioned the issue of climate change. She said that everyone has a responsibility to deal with it. It is necessary to reform the tax system and raise the tax on carbon emissions. The added tax can be used to reduce the damage caused by climate change. Support clean energy facilities for improving the global environment.


Don't Miss