INTERNATIONAL MONETARY FUND HAILS U S-CHINA TRADE DEAL

Washington D.C. headquartered International Monetary Fund has hailed the signing of the Phase 1 trade agreement between the United States and China saying it reduces but not eliminates the uncertainty that has dampened global economic growth. Speaking at an event on Friday, IMF Managing Director and Chairwoman Kristalina Georgieva made the observation. She, however, declined to give an adjusted global economic forecast, saying that would be released on Monday at the World Economic Forum at Davos in Switzerland, reports Reuters. 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. The Bulgarian economist 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. n 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”. The IMF’s had forecast the cumulative effect of the US-China trade conflict 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.” IMF comprises 189 countries is working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. Hence, its observations are taking seriously across the world.(edited by PK Chakravarty)

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