• Grinding trade disputes are undermining the global economy.
  • Trade conflicts are causing widespread, lasting damage and could shrink the global economy by $700 billion.
  • The global economy is now in a synchronized slowdown," Georgieva said.

WASHINGTON: Grinding trade disputes are undermining the global economy, which is set to see its slowest growth in nearly a decade, the newly-installed IMF chief said Tuesday.

Trade conflicts are causing widespread, lasting damage and could shrink the global economy by $700 billion or 0.8 percent, Kristalina Georgieva said in her first speech as International Monetary Fund managing director.

“In 2019, we expect slower growth in nearly 90 percent of the world. The global economy is now in a synchronized slowdown," Georgieva said in a speech ahead of IMF-World Bank annual meetings next week.

She urged countries like Germany, South Korea and the Netherlands to boost spending to stimulate growth.