FAST FIVE: "Close To A Standstill": IMF Warns Global Growth Will Be Cut To Lowest Since Lehman
In fact, according to Georgieva, who apparently was brought in to take the blame for Lagarde's disastrous legacy, global trade growth “is close to a standstill”, which last time we checked was 0%.
The trade tensions have partly caused manufacturing to tumble and weakened investment, creating a “serious risk” of spillover to other areas of the economy like services and consumption, Georgieva said on Tuesday according to Bloomberg.
“The global economy is now in a synchronized slowdown,” she said, noting that the fund estimates that 90% of of the world is seeing slower growth.
A deeper slowdown would require more fiscal support, Georgieva said.
Fiscal policy must play a central role,” she said.