IMF could cut global growth estimates 2016 – The Economist

The IMF Managing Director Christine Lagarde said leaders of the G20 need to take more measures to encourage demand, boost business and globalization.

the International Monetary Fund (IMF) will likely cut back their estimates on the growth of the world economy in 2016 because the picture has been impacted by weak demand, low trade and investment and growing inequality he said the head of the agency, Christine Lagarde.

the IMF managing director told Reuters in an interview that the G-20 need to take more measures to encourage demand, boost business and globalization and combating inequality.

and while some of the biggest threats to the global economy have not materialized as a recession generated by the decision of the UK to leave the European Union or a sharp slowdown in China Lagarde said the global outlook threw “a slight decline in growth, which is fragile, weak and certainly not being underpinned by trade”.

“We could say that the ‘Brexit’ is not causing the huge crisis we expected, we can say that the Chinese transition is carried out reasonably well and that prices of raw materials have gone up a bit, “said the official. “But this is the surface,” he added.

“But when you analyze in depth the prospects of economic growth, the level of potential for expansion, productivity, we are not getting good signals and probably have to will revise down our growth forecasts in 2016, “he said.

the IMF plans to review its estimates of the World Economic outlook at the beginning of October, before beginning their annual meetings. A new cut could be the sixth consecutive decline projected expansion in about 18 months.

In July, the IMF pointed to the uncertainty caused by the ‘Brexit’ as one of its arguments to reduce their estimates of GDP growth in the world at 3.1% this year and 3.4% in 2017.

the total economic impact of the crisis ‘Brexit’ probably will not be charged until 2017, when define future relations between the UK and the EU, Lagarde said, but stressed that the heritage of the British and has been eroded by the decline of 15 percent in the value of sterling and a decline in confidence.

Lagarde said tell the G-20 will meet on Sunday and Monday in the Chinese city of Hangzhou that their populations may be adversely affected by further reductions in the growth potential and more obstacles in free movement, services, capital and persons.

He added that people affected by trade and innovation need support to help them recover and gain new job skills.

funds @ eleconomista.com.mx

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