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IMF says world at risk of 'economic derailment' 

March 10, 2016

BBC News

The International Monetary Fund (IMF) has warned that the global economy faces a growing "risk of economic derailment."

Deputy director David Lipton called for urgent steps to boost global demand. "We are clearly at a delicate juncture," he said in a speech to the National Association for Business Economics in Washington on Tuesday.

"The IMF's latest reading of the global economy shows once again a weakening baseline," he warned. The comments come after weaker-than-expected trade figures from China showing that exports in February plunged by a quarter from a year ago. With the world's second largest economy often referred to as as "the engine of global growth", weaker global demand for its goods is read as an indicator of the general global economic climate.

The IMF has already said it is likely to downgrade its current forecast of 3.4% for global growth when it releases its economic predictions in April.

Last month, the international lender had warned that the world economy was "highly vulnerable" and called for new efforts to spur growth. Read more

 
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