Publication Date:

October 17, 2019

Electronic Access:

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Summary:

The global economy has experienced a synchronized slowdown, and growth remains weak. Escalating trade disputes, entrenched policy uncertainty, and adverse geopolitical developments have taken a toll on confidence, investment, and growth. The outlook remains precarious, and downside risks, stemming primarily from a further broadening of trade tensions and rising financial vulnerabilities, cloud the horizon. There is also a growing risk that trade disputes could spill over to monetary, exchange rate, or financial sector policies, threatening global financial stability and jeopardizing hard-won economic gains.

The focus must be on reversing tariff increases and finding lasting solutions to trade disputes, including by removing domestic distortions and strengthening the multilateral trading system. Domestic policies should continue to aim for more resilient, adaptable, and inclusive economies. By working together, guided by the principles of  “Joint Responsibility, Shared Rewards” called for in the Spring 2019 Global Policy Agenda, policymakers can bridge differences to secure lasting growth for the benefit of all people. 

The Fund is helping countries design better policies and pursue opportunities for sustainable growth and development while modernizing its toolkit and operations to meet members’ evolving needs. By delivering on its mandate and working with other institutions, the Fund plays a key role in demonstrating the effectiveness of a multilateral approach to global challenges.