IMF warns "unstable panorama" that would impact emerging countries | Chronic

The panorama proposed by the Managing Director of the International Monetary Fund (IMF), Christine Lagardebecause the global financial economy presents a scenario of instability that could affect emerging markets, such as Argentina. "The expected recovery in global growth at the end of this year is precarious", he said during a speech at the spring meeting of the World Bank (boreal), to be held next week in Washington.

"We do not see a short-term recession"said the managing director, adding that the global economy was exposed to various risks, including Brexit, high levels of debt in some sectors and countries, trade policy tensions and feeling of market turmoil.

"A year ago, I say, repair the roof now that the sun is shining. Six months ago, I reported that storms were coming. Today, the weather is more and more "unstable"warned Lagarde, who said that global growth, even if it is "reasonable"(3.5%, according to forecasts for this year) is losing momentum.

Own volatility

This is a complex context for Argentina, which is currently going through a time of crisis and volatility against the dollar. Mistrust of the global financial market could be accentuated according to the "troubles" that badyzed the future Lagarde. This "feeling" that worries the developed countries is of course even more complicated for emerging countries.

In this sense, Lagarde highlighted as positive the effect of the decision of the FED not to increase rates. A measure that strengthens the appreciation of the dollar against weaker currencies, such as the Argentine peso.

In his speech, he cited an example that could have an impact on Argentina: "If the tightening of financial conditions were stronger than expected, many governments and companies could face serious difficulties in refinancing and debt service, which could amplify exchange rate fluctuations and corrections in the financial markets. ."

Next week's meeting between central bank chairmen and finance ministers comes at a time when Beijing and Washington are engaged in difficult negotiations to end a trade war.