IMF Managing Director Kristalina Georgieva gestures as she talks to World Bank staff, where she used to work, prior to a Development Committee meeting, during the IMF and World Bank's 2019 Annual Meetings of finance ministers and bank governors, in Washington, October 19, 2019.
Georgieva, speaking with reporters at the IMF/World Bank annual meetings, also called for countries to work together to reform the global trade system, to ensure a more peaceful and prosperous world in the future.
By Alex TanziThe global economy, weighed down by tensions that have stalled worldwide trade and elevated uncertainty, is expected to see slower growth in the next half decade across a wide swath of economies.
The Managing Director of the International Monetary Fund, Ms Kristalina Georgieva, has said that there is a need for the Federal Government to diversify the economy from the oil in order to reduce the level of economic vulnerabilities now facing the country.
But Georgieva, a Bulgarian economist and the first person from an emerging market to head the global lender, said further efforts were required beyond the potential bilateral trade agreement.
In trade wars, "everybody loses", she said.
The US-Chinese trade war will reduce growth in both nations in 2019 and 2020, and that slowdown will drag down the rest of the world economy, which this year will grow by just 3 per cent, its slowest rate since the financial crisis.
In the area of revenue, she said, "Nigeria matters to the whole of Africa".
Georgieva stressed that domestic policies should focus on more resilient, adaptable and inclusive economies. America's share of global growth is expected to slip from 13.8% to 9.2% by 2024, while India's share is projected to rise to 15.5% and eclipse the US over this five-year period. After December, the court will have only one judge.
International Monetary Fund and World Bank officials said both the U.S.
He said the World Bank was committed to helping to address these challenges to provide a better life for the 700 million people in the world living in extreme poverty.
In addition, countries must "be willing to expand and improve this rule book", especially to include services and e-commerce which are not covered by traditional agreements for trade in goods, she said at the close of the meetings. -China trade agreement, and an agreement reached by London and Brussels about Britain's departure from the European Union, would ease uncertainty that has been weighing on global markets.
Asked whether it requires that Washington and Beijing completely undo the tariffs and counter-tariffs so as to bring the global economy back on track, the International Monetary Fund chief said she wouldn't "boil it down" to one single factor.
"We don't know that that will happen (so) that prospect makes this a precarious forecast", he said.
There was also no sign that discussions on the sidelines of the meetings had produced any breakthrough in the trade disputes initiated by President Donald Trump as part of his get-tough approach to stronger enforcement of US trade laws to lower America's huge trade deficits.