Financial leaders around the world have noted the rise against attacks on globalization around the world. It is feared that the latter will further slowdown international trade growth. The US presidential campaign is also not immune from it. Donald Trump, the presidential candidate from the Republican Party, has made soundbites against global trade. The decision to exit Europe by the United Kingdom, or BREXIT, is also another symptom. All these are to be discussed at the meeting convened by International Monetary Fund and the World Bank. The IMF counts 189 member countries in its fold.
Christine Lagarde, the Managing Director of the IMF, told the media that her organization’s officials percieve growth as too low for such a lengthy amount of time and benefiting only an extremely small segment of the population. She dropped the hint that finance leaders must pursue policies which will boost the lackdaisical rate of growth. They must also make sure that economic benefits are widely shared as well.
Jim Yong Kim, the President of the World Bank said that the number of recession dipped developing nations right now is more than any time during recent years. The last such a thing happened was in 2009. He blamed weakening commodity prices for the increasing weakness. The trade flows slowdown also played a major part. He reminded the audience that finance ministers must expand their efforts to curb inequality. The growth must be more sustainable and equitable.
US and world
The new economic outlook published by the IMF has downgraded US economic growth during the 2016 period from 2.2 percent to 1.6 percent. The monetary organization had quoted the previous number in July. In 2015, the American economy grew about 2.6 percent. The organization has projected 2016 global growth to be only 3.1 percent.
Finance officials from the world’s 20 most prosperous nations are scheduled to meet on October 13 in advance of sessions with policy setting bodies of the World Bank and IMF. These meetings will be completed by October 15. The US was represented by Janet Yellen and Jacob Lew, who are the Federal Reserve Chair and Treasury Secretary respectively.
US Treasury Secretary Lew said that the US will continue the argument that nations cannot simply rely on the low interest rates fashioned by their respective central banks. It will not help them to survive the present global slowdown.