Below are some key takeaways, via Reuters, from the prepared speech delivered by International Monetary Fund Managing Director Christine Lagarde.
- New global economic forecasts next week will show a “less bright” outlook as new tariffs hurt trade, investment.
- There are signs global growth has plateaued and becoming less synchronized with fewer countries benefiting.
- China’s growth showing signs of moderation that will be exacerbated by trade disputes.
- U.S. growth still strong, but easy financial conditions can pose risk as business cycle matures.
- Emerging markets excluding China could see debt portfolio outflows of up to $100 bln, matching financial crisis a decade ago.
- Not seeing broad financial contagion from trade disputes, turmoil in some emerging market countries but conditions could change rapidly.
- Countries need to resolve trade disputes and reform trade rules to deal with state subsidies, protect intellectual property rights.
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