The global economy is witnessing ‘synchronized slowdown’, leading to slower growth for 90 per cent of the world this year, and the effect is even ‘more pronounced’ in a few big emerging economies like India, International Monetary Fund (IMF) chief Kristalina Georgieva recently cautioned. Growth this year will fall to its lowest rate since 2000, she said.
The World Economic Outlook to be released soon will show downward revisions for 2019 and 2020, she said.The global economy is witnessing 'synchronized slowdown', leading to slower growth for 90 per cent of the world this year, and the effect is even 'more pronounced' in a few big emerging economies like India, International Monetary Fund (IMF) chief Kristalina Georgieva recently cautioned. Growth this year will fall to its lowest rate since 2000, she said.#
Despite this, close to 40 emerging market and developing economies, including 19 in sub-Saharan Africa, are projected to have real gross domestic product (GDP) growth rates above 5 per cent, the IMF chief said.
In the United States and Germany, unemployment is at historic lows. Yet across advanced economies, including in the US, Japan and especially the euro area, there is a softening of economic activity, she said.
Georgieva called for using monetary policy wisely and enhancing financial stability, according to global newswires.
Referring to a new IMF research, which shows how structural reforms can raise productivity and generate enormous economic gains, she said these changes are the key to achieving higher growth over the medium and long-term.
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