Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S.-China trade deal to ease global uncertainty -IMF chief

Published 17/01/2020, 17:24
Updated 17/01/2020, 17:24
© Reuters. IMF and World Bank hold Annual Meetings in Washington

© Reuters. IMF and World Bank hold Annual Meetings in Washington

WASHINGTON (Reuters) - The signing of a Phase 1 trade agreement between the United States and China will reduce - but not eliminate - uncertainty that has dampened global economic growth, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

At an event at the Peterson Institute for International Economics, Georgieva declined to give an adjusted global economic forecast, saying that would be released on Monday at the World Economic Forum in Davos, Switzerland.

But she said the IMF expected the trade deal would ensure that China's gross domestic product expands by 6% in 2020, and she had shared that forecast with Chinese Vice Premier Liu He during a meeting this week.

"It brings China in the parameters of around 6% growth for 2020, rather than below," she said.

Georgieva said the IMF had previously estimated that global trade tensions would shave 0.8%, or $700 billion, off international economic growth. Only about one-third of that was due to tariffs, with the larger share resulting from a slowdown in business investment. Since the U.S.-China trade deal was only an interim solution, the impact on investment would not be eradicated, she said.

"What we are seeing now is we have some reduction of this uncertainty, but it is not eliminated," she said.

© Reuters. IMF and World Bank hold Annual Meetings in Washington

Georgieva also said the IMF generally favoured multilateral agreements, and warned that bilateral agreements could have negative implications for world economic growth in the longer term.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.