'Synchronised slowdown': New IMF chief sees global growth threats

Washington which as the largest shareholder in the global lender wields an effective right of veto has previously expressed opposition to increasing the IMF's overall funding and shareholder quotas- a move that would also reshuffle voting rights [File

The largest emerging market economies like India are experiencing an even "more pronounced" effect of the global downturn, new International Monetary Fund chief Kristalina Georgieva has said, warning that the global economy is witnessing "synchronized slowdown" which will result in slower growth for 90 per cent of the world this year.

Georgieva's comments come a week ahead of the planned release of the global lender's updated World Economic Outlook, set for October 15.

The IMF expects slower growth in almost 90% of the world this year.

"Two years ago, the global economy was in a synchronized upswing".

"This widespread deceleration means that growth this year will fall to its lowest rate since the beginning of the decade", she added.

In what could be seen as a jab at China and other protectionist states, she warned against subsidies, lax enforcement of intellectual property rights and technology transfers.

Within the middle of her speech, the Bulgarian economist, who succeeded Christine Lagarde, acknowledged that the trade tensions had "critically weakened" manufacturing and investment exercise worldwide.

More news: Trump campaign: We won fight over Minneapolis rally

The new International Monetary Fund head said that trade disputes have now affecting multiple countries, as are other critical situations like Brexit.

The situation is a stark contrast from two years ago, before the US-China trade war got started, when countries representing almost 75% of the world's output were seeing accelerating growth, she said.

In a new report, the World Bank said global value chains - which spread production processes of goods over multiple countries - grew swiftly from 1990 to 2007 as reduced trade barriers and improved information technology and transportation links induced manufacturers, making up half of all trade.

He has blamed any U.S. slowdown on mistakes made by the U.S. Federal Reserve in raising interest rates too high last year and being too slow to cut rates this year.

In her diagnosis, Georgieva argued that economic exercise is softening in developed economies, such because the US, Japan and, particularly, the eurozone, whereas in a kind of emerging markets, comparable to India and Brazil, the slowdown is even more pronounced this year. Much of the slowdown would come from negative market reactions and waning business confidence, she added.

"We need to work together, now, and find a lasting solution on trade", Georgieva added.

"Our new analysis shows that if a major downturn occurs, corporate debt at risk of default would rise to US$19 trillion, or almost 40% of the total debt in eight major economies", she said. While some governments are burdened by high debt levels, "in places such as Germany, the Netherlands, and South Korea, an increase in spending - especially in infrastructure and R&D - will help boost demand and growth potential", Georgieva said.

Related News:



Most liked

EU Council President Says Johnson Is Playing Stupid Brexit Blame Game
Hopes for deal still alive The British government is due to publish a plan for a potential no-deal Brexit later on Tuesday. Mr Johnson's spokesman said: "The PM has been clear throughout that he will obey the law and we will leave on October 31".

Police arrest 10 people in Vancouver who joined Extinction Rebellion protest
In London , police arrested at least 20 people Monday as protesters have vowed to close down Parliament and Trafalgar Square. In April, the group held a large demonstration in London that brought major routes in the city to a standstill.

Apple plans to bundle Music and TV+
If users decide to subscribe to Apple Music, they can also choose to hide the iTunes Store 'to simplify the experience further'. Now, Apple isn't required to pressure these record labels to lower the price of each song for the rumored super bundle.

Twitter admits it provided security phone numbers and emails for advertising
We're very sorry this happened and are taking steps to make sure we don't make a mistake like this again. The issue was fixed in mid-September, Twitter said. "This was an error", Twitter said.

Two Meteor Showers To Peak This Week. Will The HV See Anything?
In 2018, observers in Europe counted more than 140 meteors per hour, according to the International Meteor Organization . After about 30 minutes in the dark, your eyes will adapt and you will begin to see meteors.

US F-16 Warplane Crashes Over Western Germany, No Injuries
Spangdahlem is home to the 52d USAF Fighter Wing which maintains, deploys and employs 24 Lockheed Martin Block 50 F-16CM/DMs. The news comes just a week after two United States airmen were killed at the Spangdahlem base in a fiery vehicle crash.

Irish PM says very hard to secure Brexit deal by next week
The U.K. government last week pitched its new withdrawal deal, but the new proposal failed to impress European Union officials. Britain says it will try to keep goods flowing by not immediately imposing border checks on imports from the EU.

Record €190m EuroMillions jackpot won in UK
If anyone in the United Kingdom wins the jackpot, they will become Britain's biggest ever lottery victor . To be a victor you must match the five main numbers and the two lucky stars to win the full jackpot.

California may see 3rd blackout amid fire fears
City staff urged local PG&E customers to sign up for alerts and notifications on their electricity situation. PG&E said Monday the blackout would include parts of seven of nine San Francisco Bay Area counties.

Joshua Brown killed in drug deal, 1 suspect arrested, police say
The conventional line of thinking likely was that if Jean looks bad, perhaps Guyger will look more sympathetic in front of a jury. The wounded Mitchell told police that he then heard Green popping off two rounds at Brown, according to Moore.

Na fires 61 to take 2-shot PGA lead in Las Vegas
While he offset a bogey on No. 8 with a birdie on No. 9 to close out his front nine, Na fell apart on the par-4 10th. Leading by three shots going to the back nine, he made triple bogey on the 10th hole without finding a hazard.

THC Products Used in Most Vaping Illness Cases — CDC
Data shows all reported patients have a history of e-cigarette use or vaping. They identified numerous products and brand names.

Dick's destroyed $5 million worth of weapons, says CEO
Just a day before that shooting, a gunman opened fire at a Walmart in El Paso, Texas, killing 22 people and injuring 24 others. Walmart stopped selling AR-15s in 2015 and in August they made a decision to stop selling some types of ammunition.

Automaker Union Says GM Talks Have ‘Taken a Turn for the Worse’
Catharines, Ont. "We are committed to continuing discussions around the clock to reach a resolution", GM's statement reads. Almost 700 workers were handed temporary layoff notices the same day at the GM propulsion plant in St.

Frank Lampard: What I really think about Tammy Abraham at Chelsea FC
They are smiley and happy, but I might have to remind them that come Sunday they might have to perform for us". I will just keep going, keep pushing.