ECB Chief Christine Lagarde Speaks of a New Order in the World Economy

• 11.23.2019, 11:36
•  World

European Central Bank President Christine Lagarde called for a new policy mix in Europe on Friday and noted major movements in global trade and traditional economic models, CNBC reports.

"Ongoing trade tensions and geopolitical uncertainties are contributing to a slowdown in world trade growth, which has more than halved since last year. This has in turn depressed global growth to its lowest level since the great financial crisis," she said in a debut speech at the European Banking Conference in Frankfurt, adding that there had been changes of a more structural nature.

"We are starting to see a global shift — driven mainly by emerging markets — from external demand to domestic demand, from investment to consumption and from manufacturing to services."

Emerging economies have relied on global trade and supply chains to boost their growth. However, the emergence of trade conflicts and technology are disrupting those economic models, the former head of the International Monetary Fund (IMF) said, adding that this was also the case in Europe.