Effect of global slowdown 'more pronounced' in India

The IMF's new chief unveils data showing trade conflicts could wipe out $700 billion in global GDP by 2020

She called for a "coordinated" response to the slowdown.

The worldwide economic system is witnessing "synchronized slowdown", which can end in slower progress for 90 per cent of the world this 12 months, and the impact is even "more pronounced" in among the largest rising market economies like India, new International Monetary Fund chief Kristalina Georgieva has warned. In July, the fund lowered its projection to 3.2% this year and 3.5% next year - its fourth downgrade since last October.

"In 2019, we expect slower growth in almost 90 percent of the world", she said.

The situation is a stark contrast from two years ago, before the US-China trade war got started, when countries representing almost 75% of the world's output were seeing accelerating growth, she said.

Georgieva's comment followed World Bank President David Malpass's similar warning on Monday in Montreal.

"Global trade growth has come to a near standstill", she said. -China tariff conflict as a prime factor for slowing global growth.

She noted that because of trade tensions "worldwide manufacturing activity and investment have weakened substantially", which is liable to have knock-on effects on the services sector.

The only solution to the trade conflict that has emerged requires all the countries working together and cooperating, Georgieva said.

Kristalina Georgieva, a Bulgarian economist, said on October 8 in her first speech as International Monetary Fund managing director that "in 2019, we expect slower growth in almost 90 percent of the world". "This is approximately the size of Switzerland's entire economy".

"Uncertainty - driven by trade but also by Brexit, and geopolitical tensions - is holding back economic potential", Georgieva said.

"Even when voice picks-up in 2020, the hot rifts would possibly per chance per chance well per chance effect in adjustments that final a technology - broken provide chains, siloed trade sectors, a "digital Berlin Wall" that forces worldwide locations to fabricate a resolution from technology techniques", the Bulgarian economist added who held the No.2 job on the World Bank. Much of the slowdown would come from negative market reactions and waning business confidence, she added.

"In some of the largest emerging market economies, such as India and Brazil, the slowdown is even more pronounced this year", she added. "We are not there" but it's better to be too early than too late, she said.

Kristalina Georgieva, the new chief of the International Monetary Fund (IMF) delivers a speech in Washington D.C., the United States, on October 8, 2019.

Central banks should keep interest rates low where appropriate.

Georgieva referred to as for utilizing financial coverage properly and enhancing monetary stability.

The headline numbers reflect a complex situation, she said.

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