Business & Economics

Effects Of Global Economic Slowdown More Visible In India: IMF Chief

BP World Bureau | Oct 09 2019 05:09:37 PM
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WASHINGTON: The effects of the global economic slowdown can evidently be visible in emerging market economies like India, said International Monetary Fund. The effects of ‘synchronized slowdown’ in the global economy were more pronounced in India, said new IMF Managing Director Kristalina Georgieva.

Two years ago, the global economy was in a synchronized upswing which means when considering the GDP rate, 75% of the global economies were growing faster. But in 2019, the things have changed that the 90% of the economies are expected to be in slower growth, said Georgieva in her very first speech as managing director of the IMF held on Tuesday.

“Even the advanced economies including the US, Japan, and especially the European countries’ economies have visibly calmed down and the US and Germany facing historic unemployment. And some of the largest emerging markets like India and Brazil have affected by the economic slowdown and it is more evident this year,” she added.

The MD of IMF remarked that global trade growth has come to a "near standstill."

And the IMF had cut its projection for India's economic growth by 0.3% points to 7% for the fiscal year 2019-20.

Currencies are once again in the spotlight and then the disputes will now extend between multiple countries, said Georgieva who took over the charge from Christine Lagarde this month as MD of IMF.

Even though, if we pick the economy in 2020 the impact of this slowdown will considerably affect the last generation because the supply chains have broken and the trade sectors have collapsed”, she added.

And she also pointed out everyone loses in a trade war, so the only remedy is that to be work together to uplift the global market from these conditions.