Dark clouds threaten bright global economic picture, says IMF’s Christine Lagarde
‘That system of rules and shared responsibility is now in danger of being torn apart. This would be an inexcusable, collective policy failure’
Washington — Countries need to avoid being sucked into a protectionist spiral that undermines the momentum of the global economy, International Monetary Fund MD Christine Lagarde said. The IMF remained optimistic about global growth prospects, Lagarde said on Wednesday in a speech in Hong Kong ahead of next week’s annual spring meetings of the fund’s 189 member nations in Washington. The world economy was benefiting from surging investment, rebounding trade and favourable financial conditions, all of which encouraged companies and households to step up spending, Lagarde said. The IMF will update its global forecast on April 17. The fund said in January it expected the global economy to grow 3.9% in 2018 and 2019. Still, she warned that threats loomed, most notably a surge in protectionism. "Yes, the current global picture is bright. But we can see darker clouds looming." Lagarde said the rise of the global trading system reduced extreme poverty, cut living costs and created millions...
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