Christine Lagarde draws a picture of the global economy that is not reassuring in an interview with our colleagues at AFP. According to the next director of the European Central Bank (ECB), there are threats to economic activity which weakens global growth.
Christine Lagarde does not mince words: the global economy is threatened not only by the trade tensions between China and the United States, but also by Brexit, which darkens the future of Europe. The future head of the European Central Bank (ECB) urges policymakers to change policies as long as it is not too late and to dialogue to resolve uncertainties around the world.
Economic growth is fragile for this year. The economic forecasts of the IMF and OECD confirm this. The Organization for Economic Co-operation and Development (OECD) expects global growth to be " the lowest since the financial crisis " in 2019. Christine Lagarde rejects protectionist temptations and is convinced that multilateralism is the only way forward for solid growth.
France on the right track
As for France, it is optimistic. Christine Lagarde believes that she is in the lead of growth in the euro area. It considers that the Hexagon enjoys a strong domestic market and that domestic consumption plays its role in the French growth.
She added that, from her point of view, the government's budget reforms will have positive effects: " As a result of the yellow vests movement, significant funding has been committed, budgeted, and clearly , plays a role of economic recovery .
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She also explains in this interview that she has little regret for her policy, especially on the management of the crisis in Argentina. She believes it would have been much worse without the IMF 's criticized help : " We have to look at both sides of the equation. What would have happened if we had not been there, if we had not done anything ? I think it would have been a lot worse. I have no doubt about it ". To date, Argentina has received some $ 44 billion of the loan that was approved in June 2018.