WASHINGTON, April 2 (Xinhua) -- Managing Director of the International Monetary Fund (IMF) Christine Lagarde said here Tuesday that her institution anticipates a "synchronized deceleration" of global economic growth in the years ahead, adding that a recession is not likely in the near-term.
Addressing the 13th Annual Capital Markets Summit held at the U.S. Chamber of Commerce (UCC) headquarters, Lagarde said ever since the IMF in January downgraded its global growth forecasts to around 3.5 percent for 2019 and 2020, the world economy has "lost further momentum."
The IMF chief's words were widely regarded as a hint that the IMF will further cut its projections in an updated World Economic Outlook due to be released on April 9.
Lagarde said the IMF now expects 70 percent of the global economy to experience a slowdown in growth in 2019, whereas just two years ago, 75 percent of the global economy experienced "synchronized growth acceleration."
"To be clear, we do not see a recession in the near term," she added. "In fact, we expect some pickup in growth in the second half of 2019 and into 2020."
During a panel discussion following her speech, Lagarde further explained that the "synchronized deceleration and a slowing momentum" that the IMF has predicted will be "across the spectrum," affecting advanced economies, emerging market economies, as well as low-income countries.
The expected rebound in global growth later this year and into early 2020, Lagarde said, is "precarious" because it is vulnerable to downside risks associated with "country-related uncertainties."
Those uncertainties, according to Lagarde, include Britain's planned exit from the European Union, and broader uncertainties such as high debt in some sectors and some countries, tensions around trade policy, as well as a sense of unease in financial markets.
"So indeed it is a delicate moment in and of itself," Lagarde said. "And it requires a delicate mix of policies. In other words, it should be handled with care."
The UCC event came about a week ahead of the IMF and World Bank's Spring Meetings scheduled for April 12-14.
