The International Monetary Fund does not have a positive view on the future of the global economy. The IMF hinted Thursday that an additional downgrade on global growth outlook.
IMF Managing Director Christine Lagarde, “The political pendulum threatens to swing against economic openness, and without forceful policy actions, the world could suffer from disappointing growth for a long time… High frequency data points to softer growth this year.”
The warnings of the IMF before a meeting of the Group of 20 largest economies in China. The meeting will focus on the fact that the global economy is at risk of stalling, and no urgent action exists to increase investment levels and revive levels of international trade, which has suffered as a result of rising protectionism around the world.
The IMF explains how the G-20 failed to come up with the right policies to spur long term growth. More than two years the group promised to work together to increase global economics growth by 2% by 2018, yet domestic politics in many of the G-20 stood in the way of this promise, and now achieving it seems unlikely.