Global economy in ‘a delicate moment’ as well as also ‘losing momentum’

International Monetary Fund (IMF) managing director Christine Lagarde speaks during a press conference in Tokyo on October 4, 2018.

Kazuhiro Nogi | AFP | Getty Images

International Monetary Fund (IMF) managing director Christine Lagarde speaks during a press conference in Tokyo on October 4, 2018.

The global economy can be in “a delicate moment,” said the International Monetary Fund’s managing director, Christine Lagarde.

“The growth can be losing the momentum which we had hoped for pretty much across the globe. We have 70 percent of the economy which can be slowing down,” Lagarde said Tuesday in an interview with CNBC’s Sara Eisen at the 13th Annual Capital Markets Summit in Washington, D.C. “The U.S. can be not immune to the deceleration anymore.”

Lagarde noted there are clear downside risks including Brexit as well as also China trade tensions which have affected business confidence.

The markets have been sensitive to global economic data. Stocks posted a strong rally on Monday on solid manufacturing data out of the U.S. as well as also China after taking a hit via weak retail sales as well as also durable goods numbers in March. Adding to the market volatility has been the news coming via the negotiations of a trade deal between China as well as also the U.S.

“I’m still optimistic [about a trade deal] as well as also there are clear impetus for both sides to move forward. the item’s vitally important,” Lagarde said.

She added which based on IMF research, if a 25 percent tariff increase was imposed, the item would certainly lead to a 0.6 percent loss of U.S. economic growth as well as also a 1.5 percent loss for the Chinese economy.

“Given which those are the two big giants currently, if you have which kind of negative impact on both, the item would certainly weigh heavily on the global economy as well as also the item would certainly be bad,” Lagarde said.