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The new IMF chief Kristalina Georgieva while commenting on the global economic crisis on Tuesday, 8 October, said the global economy is facing a ‘synchronised slowdown’ and the effect is ‘more pronounced’ this year in some of the largest emerging market economies like India.
In her speech, the IMF chief said trade disputes are undermining the global economy.
She also called for a ramp-up in carbon taxes to address the other challenge facing the global economy: the climate crisis.
"This widespread deceleration means that growth this year will fall to its lowest rate since the beginning of the decade." She said the IMF is cutting its forecasts for growth this year and next. Previously, the world economy had been projected to expand by 3.2 percent in 2019 and 3.5 percent in 2020.
While trade tensions had been talked about as a danger to the economy, "now, we see that they are actually taking a toll," she said.
“President Donald Trump's trade war with China involves steep tariffs on hundreds of billions of dollars in two-way commerce but there are conflicts with other trading partners as well,” she added.
"The results are clear. Everyone loses in a trade war," she added.
(With Inputs from AFP)
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