The International Monetary Fund (IMF) will likely cut back their estimates of growth in the world economy by 2016 because the picture has been impacted by weak demand, low trade and investment and growing inequality, said the managing director body, Christine Lagarde.
Lagarde told Reuters in an interview that G20 leaders need to take more measures to encourage demand, boost business and globalization and combat 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 cast 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 transition china performs 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 for economic growth at the level of potential for expansion, productivity, we are not getting good signals and probably have to will revise down our growth forecasts for 2016, “he said.
the IMF plans to review its estimates of the World Economic outlook in early October, before the annual meeting. 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 expansion of world GDP to 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 future relationships are defined 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% in the value of sterling and a decline in confidence.
No comments:
Post a Comment