The world faces a growing risk of economic collapse. To avoid catastrophe, the heads of States must take measures to stimulate demand. This was stated by first Deputy managing Director International monetary Fund (IMF) David Lipton, writes The Financial Times.
According to him, the global economy is in a “really difficult situation”. Lipton called on politicians to take immediate measures to stimulate economic growth and demand, as well as prepare for new threats that have emerged as a result of high volatility in commodity and financial markets. “It’s time to support economic activity and to restore the stability of the global economy,” he said.
The publication notes that the statement by the Deputy Director of the IMF was held on the publication of negative statistics on China’s economy. So, in February exports from China fell by 25.4 per cent (in dollar terms) compared to January 2015 — the worst performance since 2009. The import has decreased by 13.8 per cent.
In addition, in 2015, China’s GDP rose by 6.9 percent (in 2014 — 7.3%), which was the smallest figure for a quarter century. It is expected that Chinese economy will grow by 6.5-7 per cent in 2016.
According to the latest IMF forecast, in 2016 the global economy will grow by 3.4 per cent. The Fund allowed the revision of this forecast.