IMF’s Georgieva: A more prolonged slowdown in China will have global spill over impact

Dhwani Mehta FXStreet

International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned about the negative impact of a prolonged Chinese slowdown on the global economy, in a video speech to the annual Boao Forum for Asia on Thursday.

Key quotes

“A more prolonged slowdown in China will have a global spillover impact.”

“Central banks should act decisively and communicate clearly.”

“China has policy space to support the economy.”

Market reaction

As the US dollar recovery gathers steam, AUD/USD is feeling the pull of gravity while traders weigh in the IMF warning.

AIUD/USD is trading at 0.7425, losing 0.33% on the day, as of writing.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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