Global economy experiencing 'delicate moment': IMF

The global economy is experiencing a “delicate moment” with growing risks to growth and an unsettled climate, IMF Managing Director Christine Lagarde said on Tuesday in Washington.

Washington : The global economy is experiencing a “delicate moment” with growing risks to growth and an unsettled climate, IMF Managing Director Christine Lagarde said on Tuesday in Washington.

“Only two years ago 75 percent of the global economy experienced an upswing. So, it was a synchronized growth acceleration. For this year we expect not 75 but 70 percent of the global economy to experience a slowdown in growth, exactly the opposite of what we had. But just to be clear we do not see a recession in the near term. In fact, we expect some pickup in growth in the second half of 2019 and into 2020. So, you see you know what I mean by unsettled. And indeed the global economy is at a delicate moment.” she said.

Citing trade tensions, tighter financial conditions and geopolitical uncertainty surrounding Brexit and other events, Global growth has lost momentum she said in a speech at the US Chamber of Commerce laying out the key themes of next week’s Spring Meetings of the IMF and World Bank.

The IMF will release its latest forecast for global economic growth next Tuesday in Washington. Lagarde gave a teaser for the World Economic Outlook including major risks.Lagarde urged policymakers to prepare for slowing growth by making smart decisions on trade and fiscal policy.