The global economy should avoid recession

The global economy should avoid recession

Capitals/agencies – The World Economy needs to avoid “self-harm” that could lead to economic stagnation, the International Monetary Fund (IMF) has said.

“The time has come for the world to avoid causing stagnation, and that means dealing with trade and technological tensions through dialogue so that there is no self-harm, but also a willingness to respond if the economy slows down,” Acting IMF Chief David Lipton said in a press release.

Concerns about global trade tensions have once again focused on how central banks might stimulate the economy.

In its latest forecast, the IMF believes the global economy will grow by about 3.3 percent this year.

Lipton noted that in the event of a global recession (although the IMF does not expect this), central banks and governments should be prepared to deal with monetary and financial policy.

“We don’t have expectations of a recession, but in light of trade and technological tensions and financial markets, weaknesses are rising,” he said.

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