Lagarde says in the G20 that it is "urgent" to soften the commercial tensions

Lagarde says in the G20 that it is "urgent" to soften the commercial tensions



The director of the International Monetary Fund (IMF), Christine Lagarde, said at the G20 meeting in Buenos Aires that there is an "urgent need" to "soften trade tensions" and reverse the tariff increases, because if not , by 2020 the world GDP will suffer.

Lagarde participated, between this Thursday and today, in the summit of leaders of the economic forum, which was marked by the trade war between the United States and China.

"Global growth is still strong, but it is moderating and becoming more unequal, pressures on emerging markets have been increasing and commercial tensions have started to have negative repercussions, which increases downside risks," explained the director. of the IMF.

On trade, he noted that the estimates are that, "if tariffs remain recently high and those that have threatened to introduce and implement announced tariffs, by 2020 the world GDP could lose approximately three quarters of a percentage point" .

"If, on the other hand, the restrictions on trade in services were reduced by 15%, the world GDP could increase half a percentage point," he specified.

Lagarde also considered it urgent to adjust the "excessive world debt" level, which amounted to around 182 billion dollars.

"It is important, particularly for emerging market countries and highly indebted low-income countries, to rebuild reserves and reverse pro-cyclical fiscal policies," he said.

To address the challenges facing the economy, the IMF leader recommended to the G20, composed of the 20 largest developing and developing economies in the world, "repair trade", to promote growth and employment.

"Secondly, continue to normalize monetary policy in a well communicated, gradual and data driven manner, paying due attention to the possible effects of contagion," he added.

Also address financial risks, resort to exchange rate flexibility to mitigate external pressures - "avoiding tariffs and other policies that could weaken market confidence" - and "eliminate legal obstacles that impede women's participation in the economy" .

After finalizing the summit, the director of the IMF, organism with which in last June Argentina signed an agreement to receive 57,000 million dollars like financial aid, maintained a meeting with the Argentine president, Mauricio Macri, to that congratulated by the "effective leadership "of the G20 in 2018.

"I also congratulate the (Argentine) authorities for the determination with which they implement their economic reform plan, which will pave the way for a more inclusive and sustainable growth that benefits all Argentines." The IMF will continue to support the authorities in this task "he concluded.

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