IMF chief economist Gita Gopinath predicts no global recession with key downside risks at this delicate moment.

Charlene Vos

2019-04-29 08:35:00 Mon ET

IMF chief economist Gita Gopinath predicts no global recession with key downside risks at this delicate moment. First, trade tensions remain one of the key downside risks to the global economy, especially in the car and aircraft sectors. Trump trade envoys need to reach mutual agreement with the Chinese Xi administration with respect to U.S. bilateral trade deficit eradication and intellectual property protection and enforcement. Second, slower economic growth poses another major threat to continental economies such as China and Europe. These economies turn out to be the biggest victims of American tariffs that the Trump administration unilaterally decides to impose due to U.S. trade protectionism. Third, a deterioration in stock market investor sentiment may rapidly tighten financial constraints and conditions in the broader context of perennial public debt accumulation in the U.S. and several other OECD countries. This deterioration may inadvertently exacerbate sovereign bank doom-loop default risks.

Federal Reserve has to halt the current interest rate hike to reinvigorate a smooth global financial cycle as the Chinese, European, and Japanese central banks and fiscal authorities coordinate their next macroeconomic stimulus programs. Global monetary policy coordination continues to help maintain stock market momentum and economic growth via dovish monetary expansion and fiscal stimulus worldwide.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

House Judiciary Committee summons senior executive reps of the tech titans to assess online platforms and their market power.

Peter Prince

2019-08-18 11:33:00 Sunday ET

House Judiciary Committee summons senior executive reps of the tech titans to assess online platforms and their market power.

House Judiciary Committee summons senior executive reps of the tech titans to assess online platforms and their market power. These companies are Facebook,

+See More

President Donald Trump blames China for the long prevalent U.S. trade deficits and several other social and economic deficiencies.

Apple Boston

2025-01-22 08:35:08 Wednesday ET

President Donald Trump blames China for the long prevalent U.S. trade deficits and several other social and economic deficiencies.

President Donald Trump blames China for the long prevalent U.S. trade deficits and several other social and economic deficiencies. In recent years, Pres

+See More

Tencent Music Entertainment debuts its IPO on NYSE to strike a chord with stock market investors.

Amy Hamilton

2018-12-19 17:41:00 Wednesday ET

Tencent Music Entertainment debuts its IPO on NYSE to strike a chord with stock market investors.

Tencent Music Entertainment debuts its IPO on NYSE to strike a chord with stock market investors. Tencent Music goes public and marks the biggest IPO by a m

+See More

Goldman Sachs chief economist Jan Hatzius proposes designing a new Financial Conditions Index (FCI).

Chanel Holden

2018-07-19 18:38:00 Thursday ET

Goldman Sachs chief economist Jan Hatzius proposes designing a new Financial Conditions Index (FCI).

Goldman Sachs chief economist Jan Hatzius proposes designing a new Financial Conditions Index (FCI) to be a weighted-average of interest rates, exchange rat

+See More

Kourtney Kardashian shares the best money advice from her father.

Olivia London

2019-11-01 12:31:00 Friday ET

Kourtney Kardashian shares the best money advice from her father.

Kourtney Kardashian shares the best money advice from her father. This advice reminds her that money just cannot buy happiness. As the eldest of the Kardash

+See More

The Chinese administration delivers a written response to U.S. demands for trade reforms.

Olivia London

2018-11-25 12:37:00 Sunday ET

The Chinese administration delivers a written response to U.S. demands for trade reforms.

The Chinese administration delivers a written response to U.S. demands for trade reforms. This strategic move helps trigger more formal negotiations between

+See More