Global economic recovery is gaining momentum but could be cut off by a ''sword of protectionism'' now threatening global trade, International Monetary Fund Managing Director Christine Lagarde warns. Laura Frykberg reports.
A rather ordinary looking press conference... To tackle an extraordinary raft of global problems.. IMF chief Christine Lagarde warning the world economy could suffer. Under the new order, of Trump, Brexit and the rise of populism. (SOUNDBITE) (English) INTERNATIONAL MONETARY FUND MANAGING DIRECTOR, CHRISTINE LAGARDE, SAYING: "The sword of protectionism which is hanging over global trade and tighter global financial conditions that could trigger disruptive capital outflows from emerging to developing countries, a phenomenon that we have not seen yet." Another casualty, could be the German economy. Several leading economic institutes warning that a more inward looking U.S. and uncertainty over how Britain is withdrawing from the EU.. have caused clouds to gather over its outlook. But that's not the case just yet. (SOUNDBITE) (English) WILSON KING INVESTMENT MANAGEMENT, HEAD OF RESEARCH, RICHARD HUNTER, SAYING: "Germany is and has for some time been the leading light within the area. And continues to grow strongly." And world trade, for the moment, does too. The WTO says it's on track to expand by 2.4 percent this year. Although it's been overly optimistic in the past... Global trade grew by the slowest pace since the financial crisis last year... Failing to match even the revised forecast by the organisation. And for the year ahead, the WTO still warns of "deep uncertainty".