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The global lender's semi-annual World Economic Outlook report points to two key risks: the Sino-US trade war and the possibility of Britain's disorderly withdrawal from Europe. The IMF warned that there was a high possibility of further downgrading the outlook.
The IMF says some major economies, including China and Germany, may need to take short-term action.
"The global economy is at a delicate moment," Gita Gopinath, chief economist of the IMF, said at a press conference to discuss the report.
Gopinath said that if the slowdown intensifies, governments in "economies" may need to open their wallets at the same time. He added that there might also be a need for loose monetary policy.
These remarks are a terrible warning to global officials gathering in Washington this week for the spring meetings of the IMF and the World Bank. Countries around the world have taken concerted fiscal stimulus actions to deal with the 2008 financial crisis.
The IMF said the global economy could grow by 3.3% this year, the lowest growth rate since 2016. The latest forecast was 0.2 percentage points lower than the January forecast. This is the third time that the IMF has lowered its global economic growth forecast since October last year.
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