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Lagarde, in a preview of the April 12-14 IMF and World Bank Spring Meetings, said the global economy is “unsettled” after two years of steady growth, with the outlook “precarious” and vulnerable to trade, Brexit and financial market shocks. Lagarde cautioned, however, that years of high public debt and low interest rates since the financial crisis a decade ago have left limited room in many countries to act when the next downturn arrives so countries need to make smarter use of fiscal policy. This means striking a better balance between growth, debt sustainability and social objectives and acting to address growing inequality by building stronger social safety nets.
Lagarde also said that the IMF has revised its analysis of the U.S.-China trade war’s impacts, showing that if all trade between the world’s two largest economies were subjected to a 25 per cent tariff, U.S. gross domestic product would fall by up to 0.6 per cent while China’s GDP would fall by up to 1.5 per cent.
globebusiness I can't recall over the last 15 years when Mdm Legarde was optimistic about the global economy.... I suppose its her overly cautious nature.. but she is the Phoenix Suns of being correct on those observations she makes.
globebusiness She isn't in jail? I thought there was some big scandal a couple of years ago - so she got away with that?
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