IMF Chief Economist Gita Gopinath on IMF Downgrade, India Risks

The video discusses the forecast for slower growth in advanced economies in 2019, driven by a slowdown in the euro area, particularly in Germany and Italy. It highlights global economic risks such as trade tensions, Brexit, and a potential slowdown in China. The discussion covers the limited policy space available to counter economic slowdowns and the impact of trade tensions on financial markets. The video also addresses India's fiscal situation, emphasizing the need to address its high fiscal deficit.

Which countries in the euro area are primarily responsible for the slower growth forecast in 2019?

• Netherlands and Belgium

• Portugal and Greece

• Germany and Italy

• France and Spain

What are some of the major risks to the global economy mentioned in the forecast?

• Trade tensions and a no-deal Brexit

• Technological advancements and automation

• Climate change and natural disasters

• Rising oil prices and inflation

What is the recommendation for countries with limited policy space to prepare for future economic downturns?

• Reduce public spending

• Focus on technological innovation

• Build up fiscal buffers

• Increase interest rates

How have financial markets reacted to trade tensions post-October 2018?

• They have remained unaffected

• They have become more intertwined with trade tensions

• They have improved significantly

• They have focused more on technological stocks

What is a significant fiscal challenge for India during the election year?

• Decreasing export rates

• Low foreign investment

• High fiscal deficit

• High inflation rates