City
Epaper

US-China trade deal to reduce global uncertainty: IMF chief

By IANS | Updated: January 19, 2020 07:50 IST

The newly signed US-China phase-one trade deal will reduce the uncertainty that has impeded global economic growth, International Monetary Fund (IMF) Managing Director Kristalina Georgieva has said.

Open in App

"It is a welcoming sign that we now have the phase-one deal, sign in terms of reducing some of the uncertainty," Georgieva said on Friday during an event hosted by Peterson Institute for International Economics, a Washington-based thinktank.

The IMF chief said her organisation is making some projections around the impact of more certainty, which will be shared on Monday as part of the World Economic Outlook to be released at the World Economic Forum in Davos, Switzerland, Xinhua reported.

The multilateral lender expects the trade deal to support the growth of China's gross domestic product (GDP), Georgieva said. "It brings China in the parameters around the 6-per cent growth for 2020, rather than below," she said.

In October, Georgieva warned that trade tensions were "taking a toll" on global growth, at a time when the global economy was going through a "synchronised slowdown".

According to the IMF's earlier calculation, the cumulative effect of the US-China trade conflict, provided no actions taken, could mean a loss of 0.8 per cent of global GDP, or around $700 billion by 2020.

"What we are seeing now is that we've some reduction of this uncertainty, but it's not eliminated," Georgieva said, adding, "we would see shrinkage of this negative impact, but not the eradication of this impact."

( With inputs from IANS )

Tags: GeorgievachinaimfPeterson Institute For International EconomicsThe World Economic Forum
Open in App

Related Stories

InternationalBeijing Rains: 44 Dead and 9 Missing Due to Torrential Rainfall in China

InternationalTsunami Alert Issued in Parts of China After 8.8-Magnitude Earthquake Strikes Off Russian Coast

National"Never Said Trump Was Lying, Didn't Mention China Even Once": Rahul Gandhi on PM Modi's Operation Sindoor Speech (Watch Video)

OpinionsAfter ‘Cloud Bomb’, ‘Water Bomb’ Now?

International‘This Might Hit You Hard’: NATO Chief Mark Rutte's Warning to India, China, and Brazil Over Russia Ties Amid Ukraine War

International Realted Stories

InternationalBeijing issues highest rainstorm alert

InternationalFrance moves to fast-track return of looted colonial-era artefacts

InternationalChristian sanitary worker attacked with brick in Pakistan's Punjab

InternationalSouth Korea removes propaganda podcast speakers from North's border

International350 Afghan detainees including women and children repatriated from Pakistan via Torkham