IMF Chief Kristalina Georgieva: "Trade wars impacting global economy"

Grinding tre disputes are undermining global ecomy, which is set to see its slowest growth in nearly a dece, new International Monetary Fund chief, Kristalina Georgieva said on Tuesday. Research shows impact of tre conflict is widespre and countries must be rey to respond in unison with cash infusions, Kristalina Georgieva said in her first speech as managing director of International Monetary Fund. 

"Global tre growth has come to a near standstill," says IMF chief 

She also called for a ramp-up in carbon taxes to dress or challenge facing global ecomy: climate change.

"In 2019, we expect slower growth in nearly 90 per cent of world. global ecomy is w in a synchronized slowdown," Georgieva said in a speech ahe of IMF-World Bank autumn meetings next week. "This widespre deceleration means that growth this year will fall to its lowest rate since beginning of dece."

She said IMF is cutting its forecasts for growth this year and next. Previously, world ecomy h been projected to expand by 3.2 per cent in 2019 and 3.5 per cent in 2020. fund is due to release details in its updated World Ecomic Outlook on October 15. While tre tensions h been talked about as a danger to ecomy, "w, we see that y are actually taking a toll," she said. 

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For global ecomy, cumulative effect of tre conflicts could mean a loss of around USD 700 billion by 2020, or about 0.8 per cent of GDP, she said, which is far higher than fund previously forecast as its worst-case scenario. That is an amount "approximately size of Switzerland's entire ecomy," Georgieva said, citing IMF research showing secondary effects such as loss of confidence and financial market reactions are far greater than direct ecomic impact of tariffs.

" results are clear. Everyone loses in a tre war." President Donald Trump's tre war with China involves steep tariffs on hundreds of billions of dollars in two-way commerce but re are conflicts with or tring partners as well. And even if growth resurges next year, some of 'rifts' alrey caused by tre conflicts could cause 'changes that last a generation,' such as shifting supply chains," she said. 

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To protect against a sharp global slowdown, Georgieva called on countries with funds available to deploy ir 'fiscal firepower.' While some governments are burdened by high debt levels, "in places such as Germany, Nerlands, and South Korea, an increase in spending especially in infrastructure and R&D will help boost demand and growth potential," she said.

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