IMF: Global Economy Slows amid Growing Tensions

By: Taarek Refaat

WASHINGTON, Nov. 28 (SEE)- The International Monetary Fund (IMF) warned on Wednesday from a global economic slowdown amid growing trade tensions.

The IMF said in a report that there was a tightening of monetary policies, particularly in emerging markets.

"Recent data indicate that the global economy's momentum is slowing more than expected, which is reflected in emerging economies and the eurozone," Chairman of the IMF Christine Lagarde said, adding that a Brexit without a solid deal could trigger further erosion of confidence.

Since the IMF cut expectations for global economic growth last October, global assets have dropped sharply over concerns from rising interest rates and the US-China trade war.

The IMF report comes ahead of the G20 summit, where the US president is expected to meet his Chinese counterpart this week in Argentina.

Lagarde said that the global economy witnessed significant growth over the preceding period but, the increase of trade barriers generated a trickle-down.

She urged countries to cut spendings

and central banks to gradually increase interest rates.

"China and Germany can utilize their surplus to stimulate and rebalance the global economy," Lagarde noted.

Trade tensions grew recently as the United States threatens to increase tariffs against Chinese goods and vice versa.