Loading...

New IMF Head Blames Trade Conflicts for ‘Synchronized Global Slowdown’

October 8, 2019 by Dan McCue
Kristalina Georgieva, the new head of the International Monetary Fund.

WASHINGTON  — Kristalina Georgieva, the new head of the International Monetary Fund, said Tuesday that the world economy is in the grips of a “synchronized global slowdown” fueled by ongoing trade disputes.

Speaking at the World Bank/IMF annual meetings being held in Washington, D.C. this week, Georgieva, a Bulgarian economist selected last month to succeed Christine Lagarde, warned that if left unresolved, these disputes will result in slower growth for 90% of the world this year.

“We have spoken in the past about the dangers of trade disputes,” Georgieva said. “Now, we see that they are actually taking a toll.”

Georgieva said escalating trade wars, like the one currently going on between the United States and China, could result in a loss of about $700 billion in output by the end of next year — 0.8% of world GDP.

“In this scenario, the whole economy of Switzerland disappears,” she said.

Georgieva announced the IMF will be downgrading its projections for global growth in 2019 and 2020 next week, when it releases new projections of the economic losses related to the trade war between the United States and China.

“Global trade growth has come to a near standstill,” she said. “In part because of the trade tensions, worldwide manufacturing activity and investment have weakened substantially.”

Even if growth picks up in 2020, the current rifts could lead to changes that last a generation — broken supply chains, siloed trade sectors, a ‘digital Berlin Wall’ that forces countries to choose between technology systems,” she added.

Perhaps striving to end on an upbeat note after painting such a dire picture, Georgieva said the only meaningful solution to trade conflicts will occur if countries agree to cooperate with one another.

“The key is to improve the system, not abandon it,” she said, adding, “Everyone loses in a trade war.”

Economy

US Jobless Claims Fall to New Pandemic Low of 290,000

WASHINGTON (AP) — The number of Americans applying for unemployment benefits fell last week to a new low point since... Read More

WASHINGTON (AP) — The number of Americans applying for unemployment benefits fell last week to a new low point since the pandemic erupted, evidence that layoffs are declining as companies hold onto workers. Unemployment claims dropped 6,000 to 290,000 last week, the third straight drop, the... Read More

October 20, 2021
by Tom Ramstack
Congress Tries to Intervene In Supply Chain Disruptions

WASHINGTON -- While economists warned about disruptions to the U.S. supply chain, Chuck Fowke told a congressional panel Wednesday about... Read More

WASHINGTON -- While economists warned about disruptions to the U.S. supply chain, Chuck Fowke told a congressional panel Wednesday about countertops. “If you can’t get the cabinets, you can’t put the countertops on,” Fowke said as he testified on behalf of the National Association of Home... Read More

Commerce Head Out to Save US Jobs, 1 Computer Chip at a Time

WASHINGTON (AP) — Gina Raimondo only wears watches made by Bulova — a company that laid off her scientist father,... Read More

WASHINGTON (AP) — Gina Raimondo only wears watches made by Bulova — a company that laid off her scientist father, closed its Rhode Island factory and moved production to China in 1983. The watches give Raimondo, the U.S. commerce secretary, a sense of mission as President... Read More

October 14, 2021
by Dan McCue
White House Action on Supply Chain Bottleneck Seen As First Step To Ending Crisis

WASHINGTON -- They’ve almost become as ubiquitous as scenes of weathermen and women leaning into the fierce winds of a... Read More

WASHINGTON -- They’ve almost become as ubiquitous as scenes of weathermen and women leaning into the fierce winds of a tropical storm during hurricane season. We refer, of course, to the daily television news footage of a reporter bobbing up and down in a decidedly modest... Read More

US Wholesale Prices Rose Record 8.6% Over 12 Months

WASHINGTON (AP) — Inflation at the wholesale level rose 8.6% in September compared to a year ago, the largest advance... Read More

WASHINGTON (AP) — Inflation at the wholesale level rose 8.6% in September compared to a year ago, the largest advance since the 12-month change was first calculated in 2010. The Labor Department reported Thursday that the monthly increase in its producer price index, which measures inflationary... Read More

October 13, 2021
by Dan McCue
White House Steps Up Fight Against Supply Chain Woes

WASHINGTON --  In an ideal economy, the nation’s supply chains work something like this: raw materials, finished products and ready-to-assemble... Read More

WASHINGTON --  In an ideal economy, the nation’s supply chains work something like this: raw materials, finished products and ready-to-assemble merchandise like cars and trucks flow into the nation’s ports. The largest of these ports, those blessed to sit on deep-water harbors, typically have rail tracks... Read More

News From The Well
Exit mobile version