Effects of global economic slowdown ‘more pronounced’ in India, says new IMF Chief Kristalina Georgieva

‘As the global economy is witnessing synchronized slowdown, the effect is more pronounced this year in some of the largest emerging market economies like India,’ she said

Photo courtesy: Social media
Photo courtesy: Social media

NH Web Desk

The new International Monetary Fund (IMF) Managing Director, Kristalina Georgieva said, “As the global economy is witnessing synchronized slowdown, the effect is "more pronounced" this year in some of the largest emerging market economies like India.

Kristalina Georgieva pointed out that the widespread slowdown means that growth in 2019-20 will fall to its "lowest rate" since start of the decade. Almost 90% of the world will face slower growth, she said on Tuesday, reported news agency ANI

According to news agency ANI, Georgieva in her first speech as managing director of the International Monetary Fund said, "Two years ago, the global economy was in a synchronized upswing. Measured by GDP, nearly 75 per cent of the world was accelerating. The global economy is now in a synchronized slowdown. In 2019, we expect slower growth in nearly 90 per cent of the world.”

"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. In some of the largest emerging market economies, such as India and Brazil, the slowdown is even more pronounced this year."

Managing Director of IMF said that global trade growth has come to a "near standstill."

International Monetary Fund had cut its projection for economic growth of India by 0.3% points to 7 % for the year 2019-20 owing to the weaker-than-expected outlook for the domestic demand.

Managing Director of IMF also said that currencies are once again in the spotlight and disputes now extend between multiple countries and into other critical issues.

"Even if growth picks-up in 2020, the current rifts could lead to changes that last a generation -- broken supply chains, siloed trade sectors, a "digital Berlin Wall" that forces countries to choose between technology systems," she said.

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Published: 9 Oct 2019, 9:03 AM