New IMF chief Georgieva says world suffering ‘synchronised slowdown’

Kristalina Georgieva said it is a crisis where no one is immune and everyone has a responsibility to act

"In 2019, we expect slower growth in almost 90 per cent of the world", said Georgieva in her first speech as managing director of the International Monetary Fund.

The research takes into account U.S. President Donald Trump's announced and planned tariff increases on remaining Chinese imports, or around $300 billion worth of goods.

The executive director gave a message about the global economic outlook, but in a later talk with Bloomberg editor Tom Keene, she referred to countries that have International Monetary Fund programs, including Argentina.

"In 2019, we expect slower growth in almost 90 per cent of the world", Georgieva said during her speech on Tuesday.

"The global economy is now in a synchronized slowdown".

While trade tensions had been talked about as a danger to the economy, "now, we see that they are actually taking a toll", she said.

She noted that because of trade tensions "worldwide manufacturing activity and investment have weakened substantially", which is liable to have knock-on effects on the services sector.

She said the World Economic Outlook to be released next week will show downward revisions for 2019 and 2020.


The adverse effects of the trade battles were already being felt, Ms. Georgieva said.

She additionally mentioned that about 40 rising markets and growing economies, together with 19 in sub-Saharan Africa, may have actual GDP progress charges above 5 per cent.

To protect against a sharp global slowdown, Georgieva called on countries with funds available to deploy their "fiscal firepower".

The new executive director of the International Monetary Fund, Kristalina Georgieva, gave her first public speech in her position and made reference to countries that have programs with the organization, such as Argentina.

According to the October 2019 Monetary Policy Report of the RBI, the near-term approach of the Indian economy has fraught risks and the combination of domestic and global headwinds has depressed economic activities in the country, said the reports. IMF Managing Director Kristalina Georgieva said the slowdown was "more pronounced" in some of the largest emerging economies, including India and Brazil.

The lasting solution to the trade conflicts will require co-operation from all countries, Ms. Georgieva said.

Georgieva, a Bulgarian economist and sociologist who formally replaced Christine Lagarde on October 1, delivered her message days before the IMF's annual meeting, which begins next week in Washington, where finance ministers and central bank presidents from around the world, including Hernán Lacunza and Guido Sandleris, will meet.

For her part, Ms. Georgieva singled out three countries - Germany, the Netherlands and South Korea - as places that could benefit from increasing government spending.

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