International Monetary Fund chief economist calls for better multilateralism amid broad-based global slowdown — Interview

Global growth skewed to downside: IMFC

Global growth skewed to downside: IMFC

Meanwhile, the Chairman of International Monetary and Financial Committee, IMFC of the Fund and also Governor of South African Reserve Bank, Mr Lesetja Kganyago said: "The global expansion continues, but at a slower pace than anticipated in October 2018".

"Against this backdrop, we agree that countries need to generate fiscal space, enhance resilience including to climate change, and create sustained high and inclusive growth, including by removing obstacles to greater gender equity".

Officials wrapped up the spring meetings of the 189-nation International Monetary Fund and the World Bank on Saturday, expressing hope the slowdown that began last year will be followed by stronger growth in the second half of this year and into 2020.

The sober mood among finance leaders at the meetings this week was a stark contrast to the optimism that characterized the gathering one year ago when officials were heralding a rare period of robust and synchronized growth.

The world economy will likely grow 3.3 percent this year, the slowest expansion since 2016 and 0.2 percentage points below the global lender's estimate from January. Japan holds the chairmanship of the Group of 20 major economies.

His remarks suggest the PBOC will likely abstain from cutting its base interest rates this year - a move anticipated by some economists due to China's lowered GDP growth projections. "Fiscal policy should rebuild buffers where needed, be flexible and growth friendly and strike the right chord between ensuring debt sustainability, supporting demand while avoiding procyclicality, and safeguarding social objectives".

There is some cause for optimism.

In Europe, numerous global factors weighing on growth appear to be waning, keeping alive expectations for a recovery in the second half of the year, European Central Bank President Mario Draghi said.

Trade disputes, especially the standoff between the United States and China, have been a central talking point at the meetings this week and have been widely cited as a primary driver behind the weakening of the global economy. -China trade agreement would go "way beyond" previous efforts to open China's markets to USA companies and hoped that the two sides were "close to the final round" of negotiations.

"Central bank decisions need to remain well communicated and data-dependent", it said. Even if they do come to an agreement, a trade deal between the world's two biggest economies could have unintended consequences if China commits to purchases of USA goods that crowds out imports from other countries in Asia, the head of the IMF's Asia-Pacific department Changyong Rhee said Friday.

In remarks to the World Bank's steering committee on Saturday, Mnuchin said the US was encouraged that the bank's private sector lending operation wanted to step up support for nations "affected by fragility, conflict and violence".

"I don't see an alternative to a multilateral work", she said, noting that many important issues, such as trade, climate change, cyber security and global taxation, all require that countries cooperate and come up with joint solutions.

Chen stated: "Uncertainties from trade frictions, the negative impact of tariff increases on trade, and the disruptions of global supply chains have gradually emerged".

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