IMF official warns global economy facing various threats
  • 5 years ago
The head of the IMF says the world is facing a time of high uncertainty,... with the majority of the global economy stuck in a growth slowdown.
Christine Lagarde added the slowdown could be worsened by "self-inflicted wounds" such an unnecessary trade spats.
Lee Seung-jae reports.
Addressing some of the world's biggest economic issues at the annual Spring Meetings on Thursday,.. IMF Managing Director Christine Lagarde said 70-percent of the global economy is trapped in a growth slowdown that could get progressively worse.
"The global economy is also currently quite uncertain. As I said a year ago, we were talking about synchronized growth. And 75 percent of the global economy was going through that phase. As you heard a couple of days ago, we're now talking about synchronized slowdown by 70 percent of the global economy. (cut) We need to better address unfair trade practices and distortions in the system, including through a WTO system reform. And we need to avoid self-inflicted wounds including tariffs and other barriers."
Citing heightened trade tensions,... the IMF downgraded its overall global forecast for growth this year.
The fund expects global growth to decelerate from 3.6 percent last year to 3.3 percent in 2019,... the weakest since 2016.
Lagarde also took on Brexit,... saying the delay of Britain's divorce from the EU avoids the "terrible outcome" of a "no-deal" Brexit that would further pressure the global economy.
She also touched upon a progressive economic doctrine called the Modern Monetary Theory that's drawing attention in the U.S.
Lagarde says the doctrine isn't a "panacea",...but admitted it may help fight deflation.
The Modern Monetary Theory rose to mainstream attention in the 1990s, and has sparked debate among politicians and economists,... over the idea that government deficits aren't as dangerous as it's usually thought,... for sovereign nations that borrow in their own currency, so it can't go broke.
Lee Seung-jae, Arirang News.
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