Washington, US (BBN)-The International Monetary Fund (IMF) has warned that the global economy faces a growing “risk of economic derailment” and must take steps to boost global demand.
David Lipton, second in command at the IMF, outlined some of these risks in a speech to the National Association for Business Economics in Washington on Tuesday, reports BBC.
“The IMF’s latest reading of the global economy shows once again a weakening baseline,” he said. “We are clearly at a delicate juncture.”
The comments come after weaker-than-expected trade figures from China showing that exports plunged by a quarter from a year ago.
The IMF has already said it is likely it will downgrade its current forecast of 3.4 per cent for global growth when it next releases its economic predictions in April.
The dismal picture is one that has on-going ramifications for businesses and industries that bet on China’s growth story.