David Lipton, acting managing director of the International Monetary Fund/Bloomberg
The International Monetary Fund’s (IMF) interim Managing Director said that the Washington-based fund would like trade tensions replaced by dialogue and resolution, with some action.
Tuesday 16, July 2019
The acting Chief of the IMF urged central bankers and other policy makers to be ready with more stimulus if a global economy already slowed by a trade war downshifts significantly further, reported Bloomberg.
David Lipton, the IMF’s interim Managing Director, said, “All need to be ready in case there is a significant slowdown to respond much more forcefully, based on economic data and other circumstances in their own countries.”
The IMF will release revisions to its World Economic Outlook in a week or so, said Lipton.
“We still see the global economy has sluggish, investment is slow and trade growth is particularly slow and when you look at the whole picture, one has to be concerned that this sluggish growth needs to be responded to,” added Lipton.
In April, the IMF reduced its forecast for global growth by 0.2 percentage point to 3.3 per cent, and then a rebound to 3.6 per cent in 2020.
“Right now our baseline is for sluggish growth and slightly stronger in 2020 and not a slowdown to zero or a recession, the first rule is to do no harm to avoid a recession while the second is all policy makers should be responding in a data-driven way to see what comes,” added Lipton.