By David Lawder and Jan Strupczewski
WASHINGTON (Reuters) – Global financial leaders expressed concern about the global economy on Thursday, pointing to the possible departure of Britain from the European Union as a serious threat along with the growing anti-trade sentiment and uneven path of expansion in China.
the concern that the British leave the EU in a referendum on June 23 has spooked finance ministers, central bankers and other officials gathered for meetings of spring the International Monetary Fund and World Bank in Washington.
the IMF managing director, Christine Lagarde, said the growing fear of the authorities to an output of Britain could derail the unstable European economic recovery.
in a separate event, the Commissioner for economic and Monetary Affairs of the EU, Pierre Moscovici, she described the political implications of a British exit as “very bad news”.
Moscovici said in a speech at the Peterson Institute for International Economics that the outlook for short-term growth in Europe is getting worse. “Overall, we now expect GDP growth in the first quarter of this year has been positive, but weaker than we expected.”
Lagarde also said the IMF is “concerned” by China following the restructuring of its complicated state firms as the country is moving towards lower growth, more sustainable and led by consumer spending.
the slowdown in China, which went from an expansion of GDP two digits a few years ago to the projected growth of 6.5 percent for 2016 IMF has reduced demand for raw materials and components globally, affecting both emerging markets and developed economy.
Lagarde also revealed the policy agenda of the IMF, which promised to deliver more resources to help the 188 countries that make up the body to boost growth and protect vulnerable nations of a global slowdown and low prices of materials premiums.
Meanwhile, the finance minister of Argentina, Alfonso Prat-Gay, presented what could have been the only bright spot in the news Thursday, saying that the interest of investors in the first debt issuance Argentina in more than a decade is amazing.
the center-right government of Argentina intends to carry out more friendly economic reforms to markets, while seeking to attract investors and restored in international markets.
Prat-Gay said the government has as its highest priority on reducing double-digit inflation affecting the country
(Reporting by David Lawder.; Additional reporting by Jason Lange, Daniel Bases, Balazs Koranyi, Jan Strupczewski, Lindsay Dunsmuir, Leika Kihara, David Chance and Gernot Heller, published in Spanish by Manuel Farias)
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