NEW IMF HEAD WARNS ON TRADE CONFLICTS IMPACTS
Kristalina Georgieva, the new managing director of the International Monetary Fund, issued a warning on Tuesday about the impact of trade conflicts on the global economy. Georgieva gave her inaugural speech on Tuesday after assuming the role of managing director on October 1 following Christine Lagarde's departure early this year to run the European Central Bank.
The new IMF chief warned the global economy is facing a "synchronized slowdown" amid mounting trade tensions that could wipe out as much $700 billion in global GDP output by 2020. Much of the slowdown would come from negative market reactions and waning business confidence, she said.
"In 2019, we expect slower growth in nearly 90 percent of the world," Georgieva said during her speech on Tuesday. "The global economy is now in a synchronized slowdown." She continued: "This widespread deceleration means that growth this year will fall to its lowest rate since the beginning of the decade."