Head of IMF: Difficult situation in the global economy

Photo: EPA-EFE/ERIK S. LESSER

The new Managing Director of the International Monetary Fund, Kristalina Georgieva, spoke about the stagnation of the global economy, which is negatively affected by trade conflicts.

"The global economy is currently in a state of slow growth ... Uncertainty in trade relations is an important factor in this slowdown",- quotes the Wall Street Journal a statement of Georgieva two weeks ago.

According to her, this year the growth rate will be at the lowest level since the beginning of the decade. By the end of 2020, economists believe that world trade will stop growing, having lost nearly 700 billion dollars, or 0.8% of world GDP. She cited US-China relations as an example of constraining trade disputes. Georgieva is sure that the way out of the crisis is cooperation.

The IMF recalled that two years ago the world economy was on the rise, and growth was observed in 75% of countries.

She is convinced that countries in the world need to invest more in technology, in particular, to stimulate the growth of electronic commerce.

Previously reported that world exchanges closed the biggest drop in recent months due to the trade war between China and the United States.