July 11, 2020

The IMF advances a possible reduction of the world growth forecast in 2018 due to the commercial war


The managing director of the International Monetary Fund (IMF), Christine Lagarde, has warned of a possible reduction in the world growth forecast in 2018 as a result of the increase in commercial tensions.

Specifically, in a speech delivered Monday at the IMF headquarters, Lagarde has warned that the economic risks are beginning to "materialize". So, he has assured that The forecast for global growth has become "less clear" than when they estimated in July that world GDP would grow at a rate of 3.9% in 2018 and 2019.

Lagarde has called next week to check the new data, which is when the IMF will present the October update of the report 'World Economic Perspective'.

"If the current commercial disputes suffer an escalation, they could provoke an economic 'shock' in a greater number of economies Emerging and developing ", assured the director of the international organization.

Faced with this environment, Lagarde has recommended that countries work together to build a global trading system that is "stronger, fairer and more suitable for the future."

"There is a lot at stake because the breakdown of global supply networks has a devastating effect in many countries, including advanced economies, and could prevent emerging and low-income countries from reaching their full potential," he warned.

In this regard, the IMF has ensured, based on its calculations, that a 15% reduction in the price of cross-border trade in services could increase the G20's GDP by more than 350,000 million dollars (301,000 million euros) in a single year.

Ep

.



Source link