Global Economy at Crossroads

The International Monetary Fund is expected to make the case that the global economy is approaching a crossroads due to slowing growth and trade disputes, NHK World reported. Sources say the IMF plans to revise downward its gross domestic product projections for Japan and Europe in the upcoming world economic outlook report. The projections will be down by about 0.2 points from 3 months ago due to weakening consumption. The report is expected to say the likelihood of escalating frictions between the United States and its trade partners will be a risk. It is likely to conclude that several major economies, including Japan and Europe, have reached their growth peak. The IMF believes fluctuations on financial markets remain small, but that could change suddenly depending on trade disputes. The organization is calling on vulnerable emerging economies to become more resilient by combining fiscal, monetary and currency policies so they can quickly respond to sudden changes.