The failure of policy makers to fix deep-rooted problems in the world’s largest economies has pitched the globe into the worst slow-growth rut in nearly three decades.
And it could be about to get even worse, the International Monetary Fund said Thursday, signaling another downgrade ahead in its global growth outlook.
The IMF warned leaders of the Group of 20 largest economies meeting later this week in China that the global economy is at risk of stalling without urgent action to revive dismal trade and investment levels, and stronger efforts to reverse a rising tide of protectionism.
“The political pendulum threatens to swing against economic openness, and without forceful policy actions, the world could suffer from disappointing growth for a long time,” said IMF Managing Director Christine Lagarde.
“High frequency data points to softer growth this year,” the IMF said in the G-20 report.