U.S.-China trade war could bring substantial risks to U.S., global economy
- 5 years ago
The International Monetary Fund is warning the United States that its escalating trade dispute with China could pose substantial risks for the U.S. economy.
The IMF also said the trade war could wipe 455-billion U.S. dollars off global GDP next year.
Lee Seung-jae reports.
With the trade war raging between the United States and China,.. the head of the IMF, Christine Lagarde, warned on Thursday that it could have substantial risks for the U.S. and global economy.
" To agree to eliminate the distortions that put a brake on growth and that not only will affect the economy of those countries directly impacted but will also have spillover effects way beyond the shores of those countries. And we very strongly believe that a better integrated international trading system is actually conducive to that sustainable strong and balanced growth that is so much needed. And as I've said many times nobody wins a trade war and everybody suffers."
Speaking in Washington, Lagarde said in order for the global economy to function smoothly,.. it needs to be more open, more stable and more transparent.
"We believe that for the global economy to function well, it needs to be able to rely on a more open, more stable, and more transparent, more predictable and rules-based international trade system. As such, it will be essential that the U.S. and its trading partners, including the likes of China, Mexico and others, to agree on a new system.
Meanwhile, in a review of U.S. policies, the international lender said the U.S. economy is on track to grow 2-point-6 percent this year,... up from its previous growth forecast of 2-point-3 percent made in April,... adding it was boosted by easy financial market conditions.
However, the IMF says a number of factors threaten this positive outlook,... and it called on the Federal Reserve to hold off on interest rate hikes,... which would put the brakes on growth.
The IMF's warning came as it released a grim outlook on the global impact of the trade war.
Earlier this week,... the IMF chief said in a briefing note for G-20 finance ministers and central bank governors that taxing all trade between the world's two largest economies would wipe 455-billion U.S. dollars off global GDP next year,... an amount of loss larger than South Africa's entire economy.
Lagarde also criticized the Trump administration's efforts to overhaul the global trade relationship by continuing to raise tariffs,... stressing the importance of resolving the trade war with Beijing.
Lee Seung-jae, Arirang News.
The IMF also said the trade war could wipe 455-billion U.S. dollars off global GDP next year.
Lee Seung-jae reports.
With the trade war raging between the United States and China,.. the head of the IMF, Christine Lagarde, warned on Thursday that it could have substantial risks for the U.S. and global economy.
" To agree to eliminate the distortions that put a brake on growth and that not only will affect the economy of those countries directly impacted but will also have spillover effects way beyond the shores of those countries. And we very strongly believe that a better integrated international trading system is actually conducive to that sustainable strong and balanced growth that is so much needed. And as I've said many times nobody wins a trade war and everybody suffers."
Speaking in Washington, Lagarde said in order for the global economy to function smoothly,.. it needs to be more open, more stable and more transparent.
"We believe that for the global economy to function well, it needs to be able to rely on a more open, more stable, and more transparent, more predictable and rules-based international trade system. As such, it will be essential that the U.S. and its trading partners, including the likes of China, Mexico and others, to agree on a new system.
Meanwhile, in a review of U.S. policies, the international lender said the U.S. economy is on track to grow 2-point-6 percent this year,... up from its previous growth forecast of 2-point-3 percent made in April,... adding it was boosted by easy financial market conditions.
However, the IMF says a number of factors threaten this positive outlook,... and it called on the Federal Reserve to hold off on interest rate hikes,... which would put the brakes on growth.
The IMF's warning came as it released a grim outlook on the global impact of the trade war.
Earlier this week,... the IMF chief said in a briefing note for G-20 finance ministers and central bank governors that taxing all trade between the world's two largest economies would wipe 455-billion U.S. dollars off global GDP next year,... an amount of loss larger than South Africa's entire economy.
Lagarde also criticized the Trump administration's efforts to overhaul the global trade relationship by continuing to raise tariffs,... stressing the importance of resolving the trade war with Beijing.
Lee Seung-jae, Arirang News.