Christine Lagarde: “Global Growth Fragile and Threatened”
Global growth is “fragile” and “threatened” especially because of trade tensions, said Thursday the outgoing Managing Director of the International Monetary Fund (IMF), Christine Lagarde, during an interview in Washington. Calling the expansion “rather mediocre,” she also urged leaders to dialogue to try to “resolve uncertainties around the world,” referring to the trade war between the United States and China that weighs on trade around the world, or Brexit, which darkens the future in Europe.
The IMF lowered its global growth forecast to 3.2% at the end of July. Since then, he warned that trade tensions could further slow down activity. For its part, the Organization for Economic Co-operation and Development (OECD) expects global growth to be “the lowest since the financial crisis” in 2019, when it fell to 2.9% in 2008 before plunging to -0.5% the following year.
A veiled criticism of Trump
Asked if she could do more to convince the leaders when she heads the European Central Bank (ECB) in November, Christine Lagarde replied: “I will certainly continue to be determined to make sure that we focus on job creation, productivity, stability. However, she also insisted that monetary institutions had to be “predictable” and “stick to economic facts and data”.
Christine Lagarde: "Global Growth Fragile and Threatened" - /10
Global growth is "fragile" and "threatened" especially because of trade tensions, said Thursday the outgoing Managing Director of the International Monetary Fund (IMF),