Global finance leaders are hopeful of a modest rebound in 2020

Finance leaders from around the world have agreed that economic growth has slowed down but hope that there will be a fair growth in 2020 only if trade and geopolitical tensions do not further escalate into something worse. The assesment came in after global finance leaders and central bank heads met during discussions amongst the G-20 countries in Japan.

A meeting with IMF and World Bank

The concerned authorities had a meeting with the police-setting panel of the 189 member IMF(International monetary fund) and its sister lending organization, the World Bank. Top officials of the IMF and the World Bank asked the member countries to table a solution for the ongoing disputes on things such as trade and one of the most pressing issues such as climate change, adding that not coming to a solution will further have a detrimental effect on the current global slowdown.

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In a public address, Japan's Finance Minister who was also the chair at this year's G-20 discussions, Taro Aso, stated that the current situation is less than favorable but there hope for a growth in 2020 and added that economic expansion on a global level continues but the speed is sluggish. He also added that the main reason for the slow growth was because of trade wars and geopolitical tensions. 

The International Monetary fund in its latest report mentioned that the economy on a global scale will witness a growth of only 3% in 2019. It is being termed as the weakest growth in 10 years. However, it is predicting a slight growth of 3.4% in 2020.

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Affecting 700 million people

World Bank president, David Malpass, stated that a slowdown was affecting efforts to help 700 million people around the world living in dire conditions with a special mention of those countries who are grappling with refugees swarming in due to unrest in their own countries. In addition to the ongoing trade war between the United States of America and China, higher American Tariffs were implemented on a total of $7.5 billion in European commodities coming into the US in an issue surrounding airplane subsidies.

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A potential trade deal 

Kristalina Georgieva, director of the IMF, stated that a potential trade deal between the US and China should act in favour of the global economic status by reducing the damage the trade war between both the countries has caused as of today. She also added that consistent growth cannot be seen unless and until both the countries set aside their differences and member countries change the rules of trade at a global level in order to avoid any future issues. 

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(With inputs from agencies)