THE new Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva warned of an economic slowdown in 2019 in 90 per cent of the world during her first speech at the helm of the multilateral organisation. “In 2019, we expect slower growth in nearly 90 per cent of the world. The global economy is now in a synchronised slowdown,” Georgieva said at the IMF headquarters here on Tuesday, ‘Efe’ news reported.
“This widespread deceleration means that growth this year will fall to its lowest rate since the beginning of the decade,” the Bulgarian economist, who takes over from Christine Lagarde who will become the President of the European Central Bank, explained. Georgieva made this assessment one week ahead of the joint Annual Meeting between the IMF and World Bank (WB) in which both institutions will present their economic projections in a gathering of top Central bankers and Economy Ministers.
The IMF chief warned that the World Economic Outlook for 2019 and 2020 reflects a complex situation compared to the previous figures presented in July in Chile. In her analysis, Georgieva argued that economic activity is softening in advanced economies, such as the US, Japan and, especially, the eurozone, while in other emerging markets, such as India and Brazil, the slowdown is even more pronounced this year.