The IMF fears a "storm" that slows the economy
Lagarde warns that world growth is already "slower" and admits having "no idea" of the effects of 'brexit' or tariff war
Prepare umbrellas and lightning rods, because the managing director of the International Monetary Fund (IMF), Christine Lagarde , acting as 'woman of time', warned on Sunday that a "storm" is approaching the economy worldwide. The notice is not new at all, but updating it suggests that the problem may end up being more serious than initially thought.
During the World Summit of the Government, an event organized by Dubai that will meet until Tuesday to more than 4,000 people from 140 countries -including several heads of state and ministers-, Lagarde found that the growth of the world economy is already being "slower" than expected ». And that in January the Fund lowered its forecast of increase of the Gross Domestic Product (GDP) for this year from the previous rate of 3.7% to one of 3.5%.
The reasons for this adjustment are, to a large extent, already known: from the commercial tensions and the tariff war , particularly between the United States and China, going through the uncertainties related to the 'brexit' , especially if finally there is no agreement between the United Kingdom and the EU, until the slowdown of the economy of the Asian giant, the second world economic power today that probably reaches the leadership the next decade. It is what she called "four clouds" during her speech in the forum.
Doubts and certainties
The problem, said Lagarde, is that each time it seems closer to end up giving rise to a possible "storm", in fact, in the case of commercial battles between the major international powers have begun to take its toll on the world economy. He admitted, however, that "we have no idea what is going to happen", to then emphasize that "what we do know is that it is already beginning to have an effect on trade , on interest rates. and in the markets. "
"When there are too many clouds, you need a lightning bolt to trigger the storm," said the head of the IMF, who called on governments to prepare to avoid protectionism and deepen the path of agreements, for example, to through the World Trade Organization (WTO) . In addition, she was concerned that this return to the tariffs affecting imports comes at a time when governments, businesses and households have accumulated "very heavy debts," which will further detract from economic activity.
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