IMF predicts loss of 0.8% of global GDP due to US-China trade war

The global economy, according to recent forecasts, will lose 0.8% due to a trade conflict between the US and China, said Jerry Rice, spokesman for the International Monetary Fund (IMF).

«We said that duties carry a significant risk, now we will say more — trade tension between the US and China is already slowing down the economy …

According to our latest forecasts, this is minus 0.8% of (global) GDP, «Rice said at a briefing.

It is about slowing down the global economy. The IMF published the latest full forecast on the global economy in July, it was predicted that its growth in 2019 will be 3.2%, in 2020 — 3.5%.

Compared with the previous forecast was lowered by 0.1 percentage points.

The unfolding trade war between the United States and China is now focused on the attention of the entire world community. US President Donald Trump believes that China has no choice but to negotiate a trade deal with Washington. He insists that Beijing really wants to agree on a deal as soon as possible, since the Chinese economy is suffering heavy losses. The American economy, according to Trump, only benefits from this.

A new round of trade and economic negotiations between Washington and Beijing will be held in the US capital in early October.

As Vesti.Ekonomika wrote, US Treasury Secretary Stephen Mnuchin said earlier that President Donald Trump could at any time close a trade deal with China, but he would do so on terms favorable to the United States.

«President Trump can make a deal with China at any time, but focuses on sticking to a good deal for American workers,» Mnuchin said.

«The president says it right: he can make a deal at any time, but he wants to make only a good deal for US companies and workers. Let me remind you that these discussions have been ongoing for two and a half years,» Mnuchin said.

A day earlier, on Wednesday, President Donald Trump tweeted that he would postpone raising tariffs on Chinese goods worth $ 250 billion from October 1 to 15 as a “goodwill gesture” for China.

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