IMF: Expect weak economic growth

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MANILA – The International Monetary Fund (IMF) on Tuesday that the global economic growth will be weaker than expected because of slowdown in both advanced economies and emerging nations.

Christine Lagarde, IMF Managing Director, also said that economies like Indonesia to watch out for “spillovers” from China’s slowdown, US interest rate hike, and tighter global financial conditions.

“Overall, we expect global growth to remain moderate and likely weaker than we anticipated last July,” said Lagarde during her speech at Indonesia.

In July, the IMF said that global growth this year will be at 3.3 percent, a point below 2014’s 3.4 percent.

Given that China’s economy was slowing, this adjusts to a new growth model, said Lagarde.

“The transition to a more market-based economy and the unwinding of risks built up in recent years is complex and could well be somewhat bumpy,” she said. “That said, the authorities have the policy tools and financial buffers to manage this transition,” added Lagarde.