The International Monetary Fund (IMF) stated that world economic growth of 3.7 percent is not strong enough to face all challenges. This was stated by IMF Managing Director Christine Lagarde during a press conference at the Nusantara Room, Westin Hotel, Nusa Dua, Bali, on Thursday (11/10), on the sidelines of the IMF and World Bank Annual Meetings. She noted, there are several challenges facing the world. One of them is trade war, especially between the United States (US) and China.
"Yes, the economy is strong at the moment. We expect growth to remain steady at 3.7% this year and next. The real question is: Is the economy strong enough? Our answer is probably not enough. Because we clearly see that Growth has plateaued if 3 years in a row at 3.7%, and we also see that growth is more or less allocated around the world.If this tension went to escalate, the global economy would take a significant hit.So our strong recommendation is to deescalate those tensions and work toward a global trade system that is stronger, that is fair and that is fit for purpose and fit for the future," said Lagarde.
According to Lagarde, in recent years, excessive inequality generated by technology, trade, integration and capital work policies has increased the economic and social tensions, especially in developed economies. Therefore, Lagarde stressed that the world needs policies and reforms that not only encourage growth but also must be inclusive and sustainable. She stressed that the world needs international cooperation. (VOI/PANE/AHM)