ZCZC
BCN-25
IMF-GLOBAL-ECONOMY-TRADE
Global economy will lose $700 bln by 2020 due to trade conflicts, says
IMF head
WASHINGTON, October 9, 2019 (BSS/TASS) – The global economy will lose
about $700 bln or about 0.8% of world GDP by 2020 due to global trade
conflicts, while the growth of world trade has almost stopped, IMF Managing
Director Kristalina Georgieva said on Tuesday.
In late September, the Executive Board of the International Monetary
Fund (IMF) selected Kristalina Georgieva to serve as IMF Managing Director
and Chair of the Executive Board for a five-year term starting on October 1,
2019.
“For the global economy, the cumulative effect of trade conflicts could
mean a loss of around $700 billion by 2020, or about 0.8% of GDP,” she said
adding that the “global trade growth has come to a near standstill,”
Georgieva said.
“We have spoken in the past about the dangers of trade disputes. Now,
we see that they are actually taking a toll,” the head of the IMF added.
Georgieva called on the global community to “work together, now, and
find a lasting solution on trade.”
“Countries need to address legitimate concerns related to their trade
practices. That means dealing with subsidies, as well as intellectual
property rights and technology transfers,” she said.
“We also need a more modern global trading system, particularly to
unlock the full potential of services and e-commerce,” she stated added that
“the key is to improve the system, not abandon it.”
Currently, the most acute trade conflict is the dispute between the
United States and China. Over the past year, they have repeatedly imposed
customs duties against each other.
US President Donald Trump is trying to reduce the trade deficit, while
China disagrees with Washington’s policies and responds with similar
measures.
In 2018, the United States introduced customs duties on imports of
steel and aluminum, which caused sharp criticism, in particular from
Washington’s allies in Europe.
BSS/TASS/HR/1420