IMF Lagarde: World economy uncertain

The head of the International Monetary Fund says the world economy faces a period of uncertainty.

Managing Director Christine Lagarde made the comment after the IMF cut its global growth forecast to 3.3 percent, down 0.2 points from three months ago.

She spoke in Washington on Thursday, ahead of the G-20 meeting of finance ministers and central bank governors.

Lagarde said the global economy faces “quite uncertain” times. While the IMF expects a rebound in growth in 2020, the forecast is “precarious and subject to downside risks.”

She said the world needs to combat unfair trade practices, distortions in trade, tariffs and other barriers.

Lagarde said the delay in Britain’s departure from the European Union “gives time for continued discussions between the various parties involved in the UK.”

The IMF chief said “a no-deal Brexit would have been a terrible outcome.”

The delay of Britain’s separation from the EU avoids the “terrible outcome” of a “no-deal” Brexit that would further pressure the global economy, International Monetary Fund Managing Director Christine Lagarde said on Thursday. However, Lagarde told reporters in Washington that the arrangement will prolong uncertainty and won’t resolve the issues between Britain and the EU. “At least the UK is not leaving on April 12 without a deal,” Reuters quoted Lagarde as saying. “It probably gives time for economic agents to better prepare for all options, particularly industrialists and workers, in order to try to secure their future.” Lagarde added that “a no-deal Brexit would have been a terrible outcome.”