IMF could cut growth forecasts – The Economist

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 18 months.

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

in an interview with Reuters, Lagarde said that the leaders of the G20 need to take more measures to encourage demand, boost business and globalization, and combating inequality.

and although some of the biggest threats to the global economy have not been realized, as a recession generated by the decision of the UK to leave the European Union (EU) or a sharp slowdown in China, Lagarde said the global outlook threw “a slight decline in growth, it is fragile, weak and certainly is 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 18 months.

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

Lagarde said that tell the G-20 that their populations may be adversely affected by further reductions in the growth potential and more obstacles to free movement, services, capital and people

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