Washington – The new IMF Managing Director, Kristalina Georgieva, warned Tuesday that the economy will slow this year “in 90% of the world,” in her first address to the world body.
“In 2019, we expect slower growth in about 90 percent of the world. The global economy is currently in a simultaneous slowdown,” Georgieva said in Washington.
The Bulgarian successor, Christine Lagarde, said the overall slowdown “means growth will fall this year to the lowest pace since the start of the decade.”
“The figures reflect a difficult situation.”
Giorgeva’s assessment came a week before the start of the joint annual meeting of the International Monetary Fund and the World Bank, during which the economic forecasts will be presented to the two institutions and will include key ministers of the economy and central bank governors around the world.
She pointed out that the new economic outlook will be “low” compared to those announced in July in Chile, during which the Fund lowered its growth forecast for 2019 by 0.1% to 3.2% and similarly in 2020 to 3.5%.
The slowdown in emerging economies such as India and Brazil is “greater” than other developed countries such as the United States and Japan, she said.
She noted that the slowdown in China “is greater than the pace of growth decline in many years” that country.
Georgieva attributed part of the economic slowdown to the trade war between the United States and Beijing, as well as various geopolitical tensions and the potential impact of the Brexit.
“In the past we have talked about the risks of commercial disputes. Now we are already seeing the results,” she said.