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The IMF sees the global economy slowing down and urging world leaders to handle this "tricky moment" with caution, said Gita Gopinath, chief economist of the Fund, before the launch of the World Economic Outlook on Tuesday (April 9th) in Washington.
"Global expansion continues to weaken. For 70% of the global economy, we expect lower growth in 2019 compared to 2018. We expect a recovery in 2020. However, we are seeing significant downside risks, "said Gopinath, the new economist in Chief and the first woman to hold this position at the IMF.
Trade tensions and tense financial conditions at the end of 2018 were the main factor reducing the outlook, she said.
"Trade tensions remain a major risk. We have seen improved trade negotiations between the United States and China. However, we are concerned that trade tensions will escalate and become apparent in other sectors, such as the auto sector, which could be very detrimental to global growth. "
As growth slows, policymakers can boost medium-term growth and reduce the risk of a severe drop, Gopinath said.
"It's a delicate moment for the global economy. It is very important that policymakers do no harm and work cooperatively to reduce policy uncertainties around the world, especially with regard to trade policy. "
She added: "It is also very important that macroprudential tools be used to prevent financial risks from accumulating and that fiscal policy will have to deal with important trade-offs between demand growth and implementation. implementation of the process. the debt remains sustainable. "
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