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Home / World / The IMF says trade conflicts could exacerbate a "sluggish" global economy

The IMF says trade conflicts could exacerbate a "sluggish" global economy



This is from recent International Monetary Fund (IMF) forecasts that it has downgraded its global growth forecast for 2019 and 2020 on Tuesday as growth remains subdued and trade remains under pressure.

The agency now predicts that growth will collapse Both forecasts are 0.1 percentage points lower than in April.

The IMF said the projected recovery in 2020 is "precarious" and expects the emerging market environment to improve and progress in resolving trade tensions.

"If current tariffs continue to exist and further escalation occurs, including all trade between the US and China, this would be around half a percent lower than last year." the level of global GDP in 2020, "said Gita Gopinath, chief economist of the IMF, told CNN Business" Julia Chatterley. "

The US and China agreed to resume trading talks after a meeting between Pre last month Donald Trump and Xi Jinping, his Chinese counterpart, at the G20 summit.

But tariffs on goods worth hundreds of billions remain in force.
  China's economic downturn is real, but it's not just tariffs. [1<div class="e3lan e3lan-in-post1"><script async src="//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>
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</script></div>9659008] China's economic downturn is real, but it's not just about tariffs

The IMF also warned of potential US tariffs on auto imports and a disorderly Brexit, of which he said this would reduce confidence, weaken investment, delay global supply chains and slow down global growth significantly. "

Gopinath said a more relaxed central bank policy is not enough would deal with such risks.

"It will not be enough for monetary policy to do so is the only game in town," she said, calling on countries to consider raising government spending to boost long-term growth.

A better point is the US economy. The IMF raised expectations for growth in 2019 from 2.3% to 2.6% in the face of a stronger than expected first quarter.


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