“But it would certainly have a negative impact on global growth”, she told the FT in response to a question about such policies. She did say that policies that go against globalization could create economic problems like those caused by the start of World War I. He has vowed to pull out of trade deals like the North American Free Trade Agreement (NAFTA) and the Trans Pacific Partnership (TPP) if the terms are not seriously renegotiated to improve US interests.
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Once seen as a rising star in French politics, Lagarde was asked if she considers returning to the political arena in her home country.
But in an exclusive interview with the Agence France-Presse, she also said that Brexit underscores the need for the EU to do a better explaining how it benefits Europeans, amid “disenchantment” with the institution. But it was clear she did not see eye to eye with Trump on trade.
“The Iraqi economy has been hit hard by the double shock arising from the ISIS attacks and the sharp drop in global oil prices”, IMF Deputy Managing Director Min Zhu said in a statement. But that now seemed unlikely, she said.
The IMF’s assessment of the impact of the Brexit vote on the United Kingdom economy depends heavily on what sort of trade relationship with the European Union a new government would be able to negotiate, she said.
Should the United Kingdom follow the Norwegian model, in which Norway has access to the single market in exchange for free movement of people, then the UK’s economy would only shrink by 1.5% by 2019, in comparison to how it would be if the United Kingdom remained in the European Union, according to the International Monetary Fund.
The bank said in May the economy will expand by 0.6 percent this year and the National Treasury forecast growth of 0.9 percent in February.
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“Do we have a forecast and scenario with prolonged uncertainty, total lack of clarity, no triggering of Article 50, things staying in limbo for a long period of time? No”. We don’t have that.
