The Managing Director of the International Monetary Fund(IMF), Kristalina Georgieva has issued a warning that the global economy would witness a synchronized slowdown in growth if they fail to resolve trade conflicts and work together.
The Details: The new IMF boss made this statement at her inaugural speech after she was appointed to replace the former IMF CEO, Christine Lagarde, who resigned to become head of the European Central Bank (ECB).
“There is a serious risk that services and consumption could soon be affected,”she said. She added that trade conflicts had weakened manufacturing and investment activities globally.
Georgieva noted that the cumulative effect of trade conflicts would result in a $700 billion reduction in global Gross Domestic Product (GDP) output by 2020, or around 0.8%. She hinted that new Fund research would be unveiled during IMF and World Bank annual meetings next week.