IMF chief warns of threats to world economy
11.04.2018,
15:24
The world economy must avoid being sucked into a protectionist spiral that undermines the momentum of global growth, International Monetary Fund Managing Director Christine Lagarde said, Bloomberg reported.
YEREVAN, April 11, /ARKA/. The world economy must avoid being sucked into a protectionist spiral that undermines the momentum of global growth, International Monetary Fund Managing Director Christine Lagarde said, Bloomberg reported.
It quoted Ms. Lagarde as saying the IMF remains optimistic about global growth prospects. In a speech in Hong Kong ahead of next week’s annual spring meetings of the fund’s 189 member nations in Washington, she said the world economy is benefiting from surging investment, rebounding trade and favorable financial conditions, all of which are encouraging companies and households to step up spending.
Still, Lagarde warned that threats loom, 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 of high-paying jobs. “But that system of rules and shared responsibility is now in danger of being torn apart,” she said. “This would be an inexcusable, collective policy failure.”
Without referring directly to the U.S. or China, Lagarde warned that import restrictions hurt everyone, especially poor consumers. Such barriers prevent trade from playing its “essential” role in boosting productivity and diffusing new technologies, she said.
Responding to questions after her speech, the IMF chief said the biggest risk from the trade spat is less the impact on nominal growth and more the undermining of confidence which would dampen investment.
“We need to be a little bit sensible about this talk about a trade war,” she said. “There are threats and there are counter threats, there is an attempt to open a dialogue and I think we should support that dialogue attempt as much as we can, that is the way to progress the situation, not to let it snowball into something that would then lead to significant consequences.” -0-
It quoted Ms. Lagarde as saying the IMF remains optimistic about global growth prospects. In a speech in Hong Kong ahead of next week’s annual spring meetings of the fund’s 189 member nations in Washington, she said the world economy is benefiting from surging investment, rebounding trade and favorable financial conditions, all of which are encouraging companies and households to step up spending.
Still, Lagarde warned that threats loom, 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 of high-paying jobs. “But that system of rules and shared responsibility is now in danger of being torn apart,” she said. “This would be an inexcusable, collective policy failure.”
Without referring directly to the U.S. or China, Lagarde warned that import restrictions hurt everyone, especially poor consumers. Such barriers prevent trade from playing its “essential” role in boosting productivity and diffusing new technologies, she said.
Responding to questions after her speech, the IMF chief said the biggest risk from the trade spat is less the impact on nominal growth and more the undermining of confidence which would dampen investment.
“We need to be a little bit sensible about this talk about a trade war,” she said. “There are threats and there are counter threats, there is an attempt to open a dialogue and I think we should support that dialogue attempt as much as we can, that is the way to progress the situation, not to let it snowball into something that would then lead to significant consequences.” -0-
