FX.co ★ IMF warns of world’s economic collapse

The International Monetary Fund is concerned about the global economy’s problems. The world’s leading creditor is worried about a significant slowdown in the global economic growth. The IMF underscores the main issues leading the world to an economic collapse. The major pressures affecting economic indicators are trade wars, Brexit and serious depts. According to the IMF, these are three key risks to global economic recovery.

The most suitable term to describe the current situation in the global economy is uncertainty. This is what really scares Christine Lagarde, Managing Director of the International Monetary Fund. “The world economy is in an uncertain state,” Ms Lagarde warned at the fund’s press conference adding that, according to IMF forecasts, a “synchronized slowdown” is expected this year in countries that account for 70 percent of the global economy. This year the growth is predicted to be 3.3 percent, and then it would go up to 3.6 percent in 2020. However, the head of the IMF also noted that the forecast is "precarious and subject to downside risks," ranging from trade conflicts, high debt, and the withdrawal of the UK from the European Union. Besides, a weaker‑than‑expected growth in China could also strengthen turbulence in financial markets.