IMF’s Lagarde says oil exporters not fully recovered from 2014 shock, warns of ‘white elephant projects’

Oil exporters have not fully recovered from the dramatic oil price shock of 2014, the head of the International Monetary Fund said on Saturday, and she cautioned against spending money on “white elephant projects.” “This has led to a sharp increase in public debt, from 13 percent of GDP in 2013 to 33 percent in 2018.” Lagarde said governments in the region might be tempted to favor white elephant projects instead of investment in people and productive potential. Among oil importers in the Middle


Oil exporters have not fully recovered from the dramatic oil price shock of 2014, the head of the International Monetary Fund said on Saturday, and she cautioned against spending money on “white elephant projects.” “This has led to a sharp increase in public debt, from 13 percent of GDP in 2013 to 33 percent in 2018.” Lagarde said governments in the region might be tempted to favor white elephant projects instead of investment in people and productive potential. Among oil importers in the Middle
IMF’s Lagarde says oil exporters not fully recovered from 2014 shock, warns of ‘white elephant projects’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-10  Authors: simon dawson, bloomberg, getty images
Keywords: news, cnbc, companies, oil, fully, recovered, lagarde, middle, public, region, growth, fiscal, imfs, exporters, shock, white, warns, gdp, projects, spending, global


IMF's Lagarde says oil exporters not fully recovered from 2014 shock, warns of 'white elephant projects'

Oil exporters have not fully recovered from the dramatic oil price shock of 2014, the head of the International Monetary Fund said on Saturday, and she cautioned against spending money on “white elephant projects.”

“With revenues down, fiscal deficits are only slowly declining, despite significant reforms on both the spending and revenue sides, including the introduction of VAT and excise taxes,” Christine Lagarde, the managing director of the IMF, told a conference in Dubai.

“This has led to a sharp increase in public debt, from 13 percent of GDP in 2013 to 33 percent in 2018.”

Lagarde said the uncertainty in the growth outlook for oil exporters also reflected moves by countries to shift rapidly toward renewable energy over the new few decades, in line with the Paris climate change pact.

She said there was scope to improve fiscal frameworks in the Middle East with some of the weaknesses emanating from “short-termism and insufficient credibility.”

Lagarde said governments in the region might be tempted to favor white elephant projects instead of investment in people and productive potential.

Saudi Arabia, the Middle East’s biggest economy, has announced plans to go ahead with three major projects including NEOM, a $500 billion economic zone announced by Crown Prince Mohammed bin Salman.

The projects are backed by the country’s sovereign wealth fund, the Public Investment Fund.

Lagarde also said across the region, it is common for sovereign wealth funds to directly finance projects, bypassing the normal budget process, while state-owned enterprises in some countries had high levels of borrowing, outside the budget.

She said oil exporters could follow the example of other resource-rich countries such as Chile and Norway in using fiscal rules to protect priorities, such as social spending, from commodity price volatility.

Among oil importers in the Middle East region, growth had picked up, but it was still below the level before the global financial crisis, she said.

Fiscal deficits remained high, and public debt had risen rapidly — from 64 percent of GDP in 2008 to 85 percent a decade later, she said. Public debt now exceeded 90 percent of GDP in nearly half of these countries.

Speaking about the global economy, Lagarde said the IMF was not seeing a global recession on the horizon, but risks were rising for global growth due to trade tensions and tightening financial conditions.

The IMF’s revised forecast sees the global economy growing by 3.5 percent this year, 0.2 percentage points below what it expected in October.

“Unsurprisingly, a weaker global environment has knock-on effects on the region through a variety of channels — trade, remittances, capital flows, commodity prices, and financing conditions,” she said.


Company: cnbc, Activity: cnbc, Date: 2019-02-10  Authors: simon dawson, bloomberg, getty images
Keywords: news, cnbc, companies, oil, fully, recovered, lagarde, middle, public, region, growth, fiscal, imfs, exporters, shock, white, warns, gdp, projects, spending, global


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IMF’s Lagarde says a China slowdown, if fast, would constitute a real risk

The International Monetary Fund’s Managing Director, Christine Lagarde, told a panel in Davos that the current slowdown in China’s economy is “legitimate,” but warned it could pose a major risk if the downtrend started to accelerate. Speaking at the World Economic Forum (WEF), Lagarde said while China’s slowing growth has been a concern, it looked to be under control. “That the Chinese economy slowing down is fine. “Should the slowdown be excessively fast, it would constitute a real issue both d


The International Monetary Fund’s Managing Director, Christine Lagarde, told a panel in Davos that the current slowdown in China’s economy is “legitimate,” but warned it could pose a major risk if the downtrend started to accelerate. Speaking at the World Economic Forum (WEF), Lagarde said while China’s slowing growth has been a concern, it looked to be under control. “That the Chinese economy slowing down is fine. “Should the slowdown be excessively fast, it would constitute a real issue both d
IMF’s Lagarde says a China slowdown, if fast, would constitute a real risk Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-24  Authors: david reid, jason alden, bloomberg, getty images
Keywords: news, cnbc, companies, chinas, lagarde, fast, economy, slowing, growth, shong, imfs, constitute, think, slowdown, china, told, risk, real


IMF's Lagarde says a China slowdown, if fast, would constitute a real risk

The International Monetary Fund’s Managing Director, Christine Lagarde, told a panel in Davos that the current slowdown in China’s economy is “legitimate,” but warned it could pose a major risk if the downtrend started to accelerate.

Speaking at the World Economic Forum (WEF), Lagarde said while China’s slowing growth has been a concern, it looked to be under control.

“That the Chinese economy slowing down is fine. It is legitimate its is right and I think it is very much to be controlled by Chinese authorities,” she told CNBC’s Geoff Cutmore.

The Dow Jones Industrial Average sank 300 points on Tuesday after China reported its slowest economic growth in almost three decades. A long-running trade battle with the U.S. has accentuated fears that the world’s second-largest economy could slow more than previously expected.

“Should the slowdown be excessively fast, it would constitute a real issue both domestically and probably on a more systemic basis,” Lagarde added.

Also speaking on the panel was Hugo Shong, founding chairman of IDG Capital. His firm was the first global investment firm to enter China in the 1990s and an early investor of Baidu, Tencent and Xiaomi. Shong said he didn’t currently have any real concern over China’s cooling economy.

“Yes, in the past you were talking about 8 percent GDP (gross domestic product) growth. Now we have 6.6 percent and I think, given the size of the economy, it is a pretty good number,” he said.


Company: cnbc, Activity: cnbc, Date: 2019-01-24  Authors: david reid, jason alden, bloomberg, getty images
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Lagarde: It would be very nice if countries don’t have to rely on central banks in the next crisis

Top finance professionals urged governments to complete reforms while the global economy is still showing solid growth, insisting that central banks should not be relied upon in the event of a new crisis. “It would be very nice if the economies at large didn’t have to rely on the central banks yet again in order to resist the next shock,” Christine Lagarde, the managing director of the International Monetary Fund (IMF), said at a CNBC-hosted panel at the World Economic Forum in Davos Thursday. “


Top finance professionals urged governments to complete reforms while the global economy is still showing solid growth, insisting that central banks should not be relied upon in the event of a new crisis. “It would be very nice if the economies at large didn’t have to rely on the central banks yet again in order to resist the next shock,” Christine Lagarde, the managing director of the International Monetary Fund (IMF), said at a CNBC-hosted panel at the World Economic Forum in Davos Thursday. “
Lagarde: It would be very nice if countries don’t have to rely on central banks in the next crisis Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-24  Authors: matt clinch, adam galica
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Lagarde: It would be very nice if countries don't have to rely on central banks in the next crisis

Top finance professionals urged governments to complete reforms while the global economy is still showing solid growth, insisting that central banks should not be relied upon in the event of a new crisis.

“It would be very nice if the economies at large didn’t have to rely on the central banks yet again in order to resist the next shock,” Christine Lagarde, the managing director of the International Monetary Fund (IMF), said at a CNBC-hosted panel at the World Economic Forum in Davos Thursday.

“Which is why I think policymakers have to really take the right course of action when it comes to fiscal policies, when it comes to actually completing the reforms that some of them have undertaken but some of them have only just touched softly and need to go much deeper into,” she told CNBC’s Geoff Cutmore.

Central banks around the globe launched massive stimulus packages after the financial crash of 2008 and the subsequent debt crisis in the euro zone. The Federal Reserve, the Bank of England and the European Central Bank (ECB) were just some of the institutions that implemented unprecedented measures, such as lowering interest rates to record lows and buying up government bonds in vast quantities.


Company: cnbc, Activity: cnbc, Date: 2019-01-24  Authors: matt clinch, adam galica
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IMF Chair Christine Lagarde cuts global growth forecast for 2019 to 3.5 percent

IMF Managing Director Christine Lagarde said the IMF modestly cut its global growth forecast for 2019 to 3.5 percent from 3.7 percent. “Six months ago these were threats, but they were not at the level of magnitude we have now,” Lagarde told CNBC. Now we are seeing the ripple effects these issues are having on the global economy, she said. Right now there is uncertainty over when these risks will be resolved, Lagarde said. “This is a big uncertainty for Europe, and the role played by London as a


IMF Managing Director Christine Lagarde said the IMF modestly cut its global growth forecast for 2019 to 3.5 percent from 3.7 percent. “Six months ago these were threats, but they were not at the level of magnitude we have now,” Lagarde told CNBC. Now we are seeing the ripple effects these issues are having on the global economy, she said. Right now there is uncertainty over when these risks will be resolved, Lagarde said. “This is a big uncertainty for Europe, and the role played by London as a
IMF Chair Christine Lagarde cuts global growth forecast for 2019 to 3.5 percent Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-22  Authors: lori ioannou, adam galica
Keywords: news, cnbc, companies, uncertainty, global, cuts, trade, forecast, christine, chair, months, 2019, issues, growth, 35, risks, imf, lagarde, resolved, level


IMF Chair Christine Lagarde cuts global growth forecast for 2019 to 3.5 percent

IMF Managing Director Christine Lagarde said the IMF modestly cut its global growth forecast for 2019 to 3.5 percent from 3.7 percent. Speaking at the World Economic Forum in Davos, Switzerland, on Tuesday, she said the move was due to the high level of economic risks that are accelerating around the globe. These include the U.S.-China trade war, Brexit and China’s slowing economy.

“Six months ago these were threats, but they were not at the level of magnitude we have now,” Lagarde told CNBC. Now we are seeing the ripple effects these issues are having on the global economy, she said. Among them: tariff increases that are shaking up markets and boosting volatility particularly in advanced economies. “There is a compounding effect to all this. Market values have changed dramatically over the last few months,” she points out.

Right now there is uncertainty over when these risks will be resolved, Lagarde said. Take Brexit, for example. No one knows if the U.K.’s withdrawal from the European Union will be resolved by the March 11 deadline or if it will be a no-deal exit. Last week Parliament overwhelmingly rejected British Prime Minister Theresa May’s proposal for a deal. “This is a big uncertainty for Europe, and the role played by London as a key financial center,” she said.

On the trade front, the IMF chief noted there has been progress. The new U.S.-Mexico-Canada Agreement has been resolved, and the TPP 11 (Trans-Pacific Partnership agreement) has been ratified by seven members and is now in place. “These are all positives, but you still have the big elephant in the room: the U.S. and China that have to resolve trade disputes over issues of intellectual property, state-owned entities, subsidies and the balance of trade.”


Company: cnbc, Activity: cnbc, Date: 2019-01-22  Authors: lori ioannou, adam galica
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Central banks should consider issuing digital money, IMF’s Lagarde says

Central banks should consider issuing digital currencies as money faces a “historic turning point,” according to IMF Managing Director Christine Lagarde. She said central banks have a role supplying money to the digital economy. “I believe that we should consider the possibility to issue digital currency,” Lagarde said. Lagarde said a central bank-backed digital currency could help promote financial inclusion, security, and privacy in payments as a low-cost and efficient alternative to paper not


Central banks should consider issuing digital currencies as money faces a “historic turning point,” according to IMF Managing Director Christine Lagarde. She said central banks have a role supplying money to the digital economy. “I believe that we should consider the possibility to issue digital currency,” Lagarde said. Lagarde said a central bank-backed digital currency could help promote financial inclusion, security, and privacy in payments as a low-cost and efficient alternative to paper not
Central banks should consider issuing digital money, IMF’s Lagarde says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: elizabeth schulze, chris somodevilla, getty images
Keywords: news, cnbc, companies, imfs, central, world, digital, consider, currency, money, warned, banks, lagarde, issuing, financial


Central banks should consider issuing digital money, IMF's Lagarde says

Central banks should consider issuing digital currencies as money faces a “historic turning point,” according to IMF Managing Director Christine Lagarde.

In a speech at the Singapore Fintech Festival on Wednesday, Lagarde highlighted the changing nature of money as demand for physical cash decreases around the world. She said central banks have a role supplying money to the digital economy.

“I believe that we should consider the possibility to issue digital currency,” Lagarde said.

Lagarde said a central bank-backed digital currency could help promote financial inclusion, security, and privacy in payments as a low-cost and efficient alternative to paper notes. But she also warned of risks to financial stability and innovation.

“My message is that while the case for digital currency is not universal, we should investigate it further, seriously, carefully, and creatively,” Lagarde said.


Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: elizabeth schulze, chris somodevilla, getty images
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IMF’s Christine Lagarde postpones trip to the Middle East

International Monetary Fund Managing Director Christine Lagarde has postponed her trip to the Middle East, according to an IMF statement on Wednesday. “The Managing Director’s previously scheduled trip to the Middle East region is being deferred,” an IMF spokesperson said. He was last seen on Oct. 2 when he entered the Saudi consulate in Istanbul. Turkish officials told media outlets that Khashoggi was killed and dismembered with a bone saw inside the consulate. He is due to fly to the Turkish c


International Monetary Fund Managing Director Christine Lagarde has postponed her trip to the Middle East, according to an IMF statement on Wednesday. “The Managing Director’s previously scheduled trip to the Middle East region is being deferred,” an IMF spokesperson said. He was last seen on Oct. 2 when he entered the Saudi consulate in Istanbul. Turkish officials told media outlets that Khashoggi was killed and dismembered with a bone saw inside the consulate. He is due to fly to the Turkish c
IMF’s Christine Lagarde postpones trip to the Middle East Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-17  Authors: saheli roy choudhury, joanna tan, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, middle, riyadh, trip, lagarde, christine, imf, ceo, khashoggi, turkish, imfs, east, told, event, consulate, postpones, officials, saudi


IMF's Christine Lagarde postpones trip to the Middle East

International Monetary Fund Managing Director Christine Lagarde has postponed her trip to the Middle East, according to an IMF statement on Wednesday.

Lagarde’s visit to the region included attending the Future Investment Initiative, also known as “Davos in the Desert,” in Saudi Arabia. The conference is scheduled for Oct. 23 to 25.

“The Managing Director’s previously scheduled trip to the Middle East region is being deferred,” an IMF spokesperson said. The IMF did not give a reason for the postponement. CNBC has reached out to the IMF for clarification.

The investing event in Riyadh has seen mounting cancellations since the disappearance and suspected killing of Washington Post columnist Jamal Khashoggi. Turkish officials allege that he was murdered by a team of Saudi operatives, but Riyadh has fiercely denied the claim.

Media outlets including CNBC, Financial Times, CNN and The New York Times have also withdrawn from the event, citing concerns about Khashoggi’s disappearance.

Several prominent business leaders have also said they will not be attending the event, including J.P. Morgan Chase CEO Jamie Dimon, BlackRock CEO Larry Fink, Blackstone CEO Stephen Schwarzman and Mastercard CEO Ajay Banga.

Last week, Lagarde told reporters at the IMF and World Bank annual meetings in Bali, Indonesia, that while she was “horrified” at the disappearance and suspected killing of Khashoggi, she was still planning to attend the conference in Riyadh.

“I have to conduct the business of IMF in all corners of the world, and with many governments,” she said at that time. “When I visit a country, I always speak my mind. You know me, I do. At this point in time, my intention is to not change my plan and to be very attentive to the information that is coming out in the next few days, but I speak my mind.”

Khashoggi, who had been living in the United States as a voluntary exile from Saudi Arabia, was a prominent critic of Crown Prince Mohammed bin Salman and the Saudi royal family. He was last seen on Oct. 2 when he entered the Saudi consulate in Istanbul.

Turkish officials told media outlets that Khashoggi was killed and dismembered with a bone saw inside the consulate. The Saudi government has denied those allegations.

An official told the Associated Press on Tuesday that a police search of the consulate found evidence that Khashoggi was slain there.

U.S. Secretary of State Mike Pompeo met Saudi Arabia’s King Salman, Crown Prince Mohammed and Foreign Minister Adel al-Jubeir in Riyadh on Tuesday to discuss the matter. He is due to fly to the Turkish capital of Ankara on Wednesday to meet Turkish officials.


Company: cnbc, Activity: cnbc, Date: 2018-10-17  Authors: saheli roy choudhury, joanna tan, kazuhiro nogi, afp, getty images
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IMF Christine Lagarde on Jamal Khashoggi’s disappearance, Saudi Arabia

BALI, Indonesia — Christine Lagarde, managing director of the International Monetary Fund, said she is “horrified” at the disappearance and suspected killing of journalist Jamal Khashoggi but still plans to attend a conference in Saudi Arabia later this month. U.S. Treasury Secretary Steven Mnuchin told CNBC on Friday that he, too, still plans to attend FII. “We are concerned about what is the status of Mr. Khashoggi,” Mnuchin told CNBC. Saudi Arabia has denied wrongdoing. Khashoggi had been liv


BALI, Indonesia — Christine Lagarde, managing director of the International Monetary Fund, said she is “horrified” at the disappearance and suspected killing of journalist Jamal Khashoggi but still plans to attend a conference in Saudi Arabia later this month. U.S. Treasury Secretary Steven Mnuchin told CNBC on Friday that he, too, still plans to attend FII. “We are concerned about what is the status of Mr. Khashoggi,” Mnuchin told CNBC. Saudi Arabia has denied wrongdoing. Khashoggi had been liv
IMF Christine Lagarde on Jamal Khashoggi’s disappearance, Saudi Arabia Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-13  Authors: yen nee lee, chris somodevilla, getty images
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IMF Christine Lagarde on Jamal Khashoggi's disappearance, Saudi Arabia

BALI, Indonesia — Christine Lagarde, managing director of the International Monetary Fund, said she is “horrified” at the disappearance and suspected killing of journalist Jamal Khashoggi but still plans to attend a conference in Saudi Arabia later this month.

“Human rights, freedom of information are essential rights. And horrifying things have been reported and I am horrified,” she told reporters on Saturday in Bali, Indonesia, where the IMF and World Bank are conducting their annual meetings.

“But I have to conduct the business of IMF in all corners of the world, and with many governments,” she added. “When I visit a country, I always speak my mind. You know me, I do. At this point in time, my intention is to not change my plan and to be very attentive to the information that is coming out in the next few days, but I speak my mind.”

Lagarde was responding to a question on whether she will proceed with her planned visit to Riyadh, Saudi Arabia to attend the Future Investment Initiative, also known as “Davos in the Desert,” which is scheduled for Oct. 23 to 25.

Several luminaries and media outlets — including CNBC, Financial Times, CNN and The New York Times — have withdrawn from the event, citing concerns about the disappearance of Khashoggi and his alleged murder.

Lagarde is not the only one who is going ahead with attending the conference. U.S. Treasury Secretary Steven Mnuchin told CNBC on Friday that he, too, still plans to attend FII.

“We are concerned about what is the status of Mr. Khashoggi,” Mnuchin told CNBC. “If more information comes out and changes, we could look at that, but I am planning on going.”

Khashoggi, a critic of Crown Prince Mohammed bin Salman and the Saudi royal family, was last seen Oct. 2 when he entered the Saudi consulate in Istanbul. Saudi Arabia has denied wrongdoing. Turkey has reportedly informed the U.S. that it has video and audio evidence showing Khashoggi, who wrote for The Washington Post, was killed inside the consulate.

Khashoggi had been living in the United States as a voluntary exile from Saudi Arabia.

Several senators, led by Republicans Bob Corker and Lindsey Graham, have triggered a U.S. investigation into Khashoggi’s whereabouts. The White House has said senior administration officials, including President Donald Trump’s son-in-law and top advisor Jared Kushner and Secretary of State Mike Pompeo, have been in contact with the crown prince regarding the journalist’s disappearance.

— CNBC’s Mike Calia contributed reporting.


Company: cnbc, Activity: cnbc, Date: 2018-10-13  Authors: yen nee lee, chris somodevilla, getty images
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‘I would not associate Jay Powell with craziness,’ says IMF’s Christine Lagarde

International Monetary Fund managing director Christine Lagarde said Thursday she “would not associate” U.S. Federal Reserve Chairman Jerome Powell “with craziness.” “I would not associate Jay Powell with craziness. Lagarde made the comment in response to a question from CNBC’s Geoff Cutmore about U.S. President Donald Trump. I think the Fed has gone crazy,” the president said after walking off Air Force One in Erie, Pennsylvania for a rally. Lagarde added: “All over the world, it is certainly a


International Monetary Fund managing director Christine Lagarde said Thursday she “would not associate” U.S. Federal Reserve Chairman Jerome Powell “with craziness.” “I would not associate Jay Powell with craziness. Lagarde made the comment in response to a question from CNBC’s Geoff Cutmore about U.S. President Donald Trump. I think the Fed has gone crazy,” the president said after walking off Air Force One in Erie, Pennsylvania for a rally. Lagarde added: “All over the world, it is certainly a
‘I would not associate Jay Powell with craziness,’ says IMF’s Christine Lagarde Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: weizhen tan, ted kemp, kazuhiro nogi, afp, getty images
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'I would not associate Jay Powell with craziness,' says IMF's Christine Lagarde

International Monetary Fund managing director Christine Lagarde said Thursday she “would not associate” U.S. Federal Reserve Chairman Jerome Powell “with craziness.”

“I would not associate Jay Powell with craziness. No, no, he comes across, and members of his board, as extremely serious, solid and certainly keen to base their decisions on actual information, and decide to communicate that properly,” she said, speaking to CNBC at the IMF and World Bank annual meetings in Bali, Indonesia.

Lagarde made the comment in response to a question from CNBC’s Geoff Cutmore about U.S. President Donald Trump. The American leader knocked the Fed on Wednesday for continuing to raise interest rates despite some recent market turbulence.

“I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy,” the president said after walking off Air Force One in Erie, Pennsylvania for a rally.

Lagarde added: “All over the world, it is certainly a good principle to have independence of the central banks and of the central bank governors. Certainly we have advocated that in all countries, and I think that the Fed is no exception.”


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Global growth is ‘probably not enough’ to withstand a trade war, IMF’s Christine Lagarde warns

The global economy, while still growing, has hit a plateau and may not be strong enough to withstand rising trade tensions, International Monetary Fund (IMF) Managing Director Christine Lagarde said Thursday. The IMF earlier this week cut its forecast for global growth to 3.7 percent this year and next year — down 0.2 percentage points from an earlier estimate. The downward revisions mean that the global economy would grow by the same rate for three consecutive years starting 2017. “Moreover, so


The global economy, while still growing, has hit a plateau and may not be strong enough to withstand rising trade tensions, International Monetary Fund (IMF) Managing Director Christine Lagarde said Thursday. The IMF earlier this week cut its forecast for global growth to 3.7 percent this year and next year — down 0.2 percentage points from an earlier estimate. The downward revisions mean that the global economy would grow by the same rate for three consecutive years starting 2017. “Moreover, so
Global growth is ‘probably not enough’ to withstand a trade war, IMF’s Christine Lagarde warns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: yen nee lee
Keywords: news, cnbc, companies, lagarde, christine, tensions, growth, earlier, warns, rising, war, imf, probably, global, imfs, strong, withstand, economy, trade, world


Global growth is 'probably not enough' to withstand a trade war, IMF's Christine Lagarde warns

The global economy, while still growing, has hit a plateau and may not be strong enough to withstand rising trade tensions, International Monetary Fund (IMF) Managing Director Christine Lagarde said Thursday.

The IMF earlier this week cut its forecast for global growth to 3.7 percent this year and next year — down 0.2 percentage points from an earlier estimate. The downward revisions mean that the global economy would grow by the same rate for three consecutive years starting 2017.

“The real question is: Is the economy strong enough? To that, my answer is ‘probably not enough’ because we clearly see growth has plateaued three years in a row — it is at 3.7 percent — and we also see that growth is unevenly allocated around the world,” Lagarde told reporters at the IMF and World Bank annual meetings in Bali, Indonesia.

“Moreover, some of the risks that we have highlighted at our spring meetings in April have now begun to materialize, especially from the rising trade barriers,” she added. “If these tensions were to escalate, the global economy would take a significant hit.”

In addition to the hit to economic growth prospects, worsening trade tensions could also trigger another global financial crisis, the IMF said earlier this week.

Lagarde said the best response to the ongoing tensions is to “de-escalate, fix the system, don’t break it.” She added that the casualties won’t just be the U.S. and China — the two largest economies in the world in the center of the current tariff fight – but also countries that are part of the global supply chain and suppliers of raw materials to manufacturers involved in the dispute.


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Tariff decisions are ‘eroding confidence’ in many corners of the world: IMF’s Lagarde

Tariff decisions are ‘eroding confidence’ in many corners of the world: IMF’s Lagarde19 Hours AgoChristine Lagarde of the International Monetary Fund says de-escalating trade tensions, addressing the issues and proposing new frameworks is imperative.


Tariff decisions are ‘eroding confidence’ in many corners of the world: IMF’s Lagarde19 Hours AgoChristine Lagarde of the International Monetary Fund says de-escalating trade tensions, addressing the issues and proposing new frameworks is imperative.
Tariff decisions are ‘eroding confidence’ in many corners of the world: IMF’s Lagarde Cached Page below :
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Tariff decisions are 'eroding confidence' in many corners of the world: IMF's Lagarde

Tariff decisions are ‘eroding confidence’ in many corners of the world: IMF’s Lagarde

19 Hours Ago

Christine Lagarde of the International Monetary Fund says de-escalating trade tensions, addressing the issues and proposing new frameworks is imperative.


Company: cnbc, Activity: cnbc, Date: 2018-10-10
Keywords: news, cnbc, companies, lagarde, tensions, lagarde19, imfs, monetary, eroding, confidence, proposing, issues, tariff, corners, international, decisions, trade, world


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