Christine Lagarde shared her thoughts on the world’s momentum for economic development during a George Talks Business event.
Despite decreasing its global economic growth forecast from 3.6 percent to 3.3. percent, the International Monetary Fund (IMF) is not worried about the global economy.
Christine Lagarde, the fund’s managing director, said during a George Talks Business event on Thursday that even though the momentum for global economic growth has slowed more than expected, the second half of 2019 is expected to be better than the first half, and there is no recession.
There are still geopolitical risks to growth, she added, such as the result of the Brexit decisions. The fund also is concerned about trade tensions between the United States and China and the effect those tensions are having on global economic growth, and trade has historically been a source of global economic growth.
“We are still worried about tensions on trade because if you combine all the tariff increases, all the threats, all the not-yet-ratified or in-the-making agreements, we still have a lot of uncertainty on the trade front,” Ms. Lagarde said.
“It’s critically important that trade tensions be eliminated rather than resulting to tariff increases and threats,” she continued, “and that there will be a clear understanding of where and how trade is going to develop in the future and continue to fuel growth.”
Ms. Lagarde also said the IMF anticipates that the trade tension would be resolved.
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Briahnna M. Brown 