Policy makers in the world's biggest economies have failed to steer them out of the worst slow-growth rut they have experienced in almost three decades. The IMF warned leaders that the outlook could be for even slower global growth.
|The G20 countries are to meet later this week in China. The IMF warns that urgent action is needed to help revive weak trade and investment levels. Protectionism is also rising resulting a trend that will result in less trade. The G20 or Group of Twenty, is an international forum where government officials and central bank governors, study, review, and discuss policy issues dealing with the promotion of international financial stability. It was founded in 1999.|
“Inaction risks reversing global economic integration, and therefore stalling an engine that, for decades, has created and spread wealth around the globe. This risk is, in my view, too large to take.” However, US Treasury Secretary Jacob Lew said: “We certainly are not seeing a global recession like we did in 2008, but I think that the macroeconomic policies have failed to take advantage of the opportunity to have a more robust period of growth.”
"You could argue that Brexit is not really delivering the massive crisis that we had expected, you could argue that the Chinese transition is proceeding reasonably well, and you could argue that low commodity prices have gone up a little bit. So this is on the surface. However, when you look deep down at the economic growth prospects, at the growth potential, at the productivity, we are not getting very good signals, and we will probably be revising down our forecast for growth in 2016."Lagarde said that the full impact of the Brexit vote would not be known until next year. She noted, however, that the pound's value had already declined by 15 percent. The IMF is scheduled to issue a new forecast in early October just ahead of its annual meeting. If another decline is forecast, it would mark the sixth straight decline in the last 18 months.