In her inaugural speech, the new International Monetary Fund Managing Director Kristalina Georgieva warns over a “synchronized slowdown” in global growth.
Key Quotes:
Fund expects slower growth in nearly 90% of world in 2019.
New IMF research shows trade conflicts could slash global GDP output by $700 bln or 0.8% by 2020.
A major downturn could put $19 trillion in corporate debt at risk of default – 40% of the total in 8 major economies.
Central banks should keep interest rates low where appropriate.
Germany, the Netherlands and South Korea should increase spending on infrastructure and research to boost demand and growth potential.
Fiscal spending increases cannot work everywhere as global public debt remains near record levels.
Countries need to address ‘legitimate concerns’ about trade practices, including subsidies, intellectual property rights and technology transfers.
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