"We welcome any steps to de-escalate tensions and to roll back recent trade measures, particularly if they can provide a path towards a comprehensive and lasting deal," she said.
Aside from trade tensions, Gopinath also highlighted geopolitical tensions as another downside risk to global growth, warning that Brexit-related risks could further disrupt economic activity, and derail an already fragile recovery in emerging market economies and the euro area.
"To rejuvenate growth, policymakers must undo the trade barriers put in place with durable agreements, rein in geopolitical tensions, and reduce domestic policy uncertainty," she said.
In IMF's assessment, in the absence of monetary stimulus, global growth would be lower by 0.5 percentage points in both 2019 and 2020. The IMF chief economist, however, noted that monetary policy cannot be the only game in town. "It should be coupled with fiscal support where fiscal space is available, and policy is not already too expansionary," she said.
While monetary easing has supported growth, she said, "it is essential that effective macroprudential regulation be deployed today to prevent mispricing of risk and excessive buildup of financial vulnerabilities."
Gopinath said the global outlook "remains precarious" with a synchronized slowdown and uncertain recovery. "At 3 percent growth, there is no room for policy mistakes and an urgent need for policymakers to support growth," she said.
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