IMF says global economy cooling, coordinated stimulus may be needed

The global economy is slowing more than expected and a sharp downturn could require world leaders to coordinate stimulus measures, the International Monetary Fund said on Tuesday as it cut its forecast for world economic growth this year.[WASHINGTON] The global economy is slowing more than expected and a sharp downturn could require world leaders to coordinate stimulus measures, the International Monetary Fund said on Tuesday as it cut its forecast for world economic growth this year.

"This is a delicate moment for the global economy," IMF chief economist Gita Gopinath said in a news conference to discuss the report.Governments may need to open their pocketbooks at the same time"across economies" if the slowdown becomes more serious, Gopinath said, adding that loose monetary policy might also be needed.The comments provided an eerie warning to the global officials gathering in Washington this week for the spring meetings of the IMF and World Bank.

One potential misstep lies in Britain's indecision over how to leave the EU. Despite looming deadlines, London has not decided how it will try to shield its economy during the exit process. The outlook for Germany, one of the main drivers of European growth, suffered from weaker demand for its exports, softer consumer spending and new emissions standards that have depressed car sales.

US Treasury yields slid on concerns about the global economic outlook, which also weighed on US stocks. The S&P 500 index was off about 0.4 per cent and the Dow Jones Industrial Average was down about 0.6 per cent.The IMF said it supported the US Federal Reserve's decision to pause its rate-hiking cycle, which the global lender said would support the US and world economies this year by easing financial conditions.

US tariffs on Chinese imports are hitting Chinese growth and also weighing on Latin America and other parts of the world dependent on Chinese demand for commodities.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Rising corporate market power could hit workers, investment: IMFThe growing market power of a small fraction of companies in wealthy countries could crimp investment and hurt workers, the International Monetary ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Europe: Shares hit by US tariff threat, growth jitters[BENGALURU] European shares slid on Tuesday, with most sectors falling after the United States threatened to slap tariffs on goods from the European Union, with worries compounded by the IMF cutting its global growth forecast. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »

Singapore shares gain 1% on Wednesday as rally continuesTHE rally in Asian markets continued on Wednesday on the back of improving prospects of a US-China trade deal, even though IMF chief Christine Lagarde warned of slower growth in many economies. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »