Tue | Jan 22, 2019

IMF says trade tensions, debt load threaten world economy

Published:Sunday | April 22, 2018 | 12:09 AM


The International Monetary Fund's (IMF) policy making committee said yesterday that a strong world economy is threatened by increasing tension over trade and countries' heavy debt burden.

Longer-term prospects are clouded by sluggish growth in productivity and ageing populations in wealthy nations.

In a statement at the end of three days of meetings, the lending agency urged countries to take advantage of the broadest-based economic expansion in a decade to cut government debt and to enact reforms that will make their economies more efficient.

The IMF expects the world economy to grow 3.9 per cent this year and next, which would be the strongest since 2011.

But an intensifying dispute between the United States and China over Beijing's aggressive attempt to challenge US technological dominance has raised the prospect of a trade war that could drag down worldwide growth.