World GDP may fall by 0.5 percent due to the tariff conflict between the US and China, said Christine Lagarde. Another risk for the world economy is low-interest rates.
Existing trade conflicts pose a major threat to the growth of the world economy. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), made this statement at the end of the G20 summit in Fukuoka, Japan, on Sunday, June 9. The Finance Ministers and heads of Central banks of the G20 member States attended the meeting.
The IMF estimates that the tariff conflict between China and the United States could lead to a 0.5 percent (or $ 455 billion) decline in global GDP in 2020. Resolution of existing trade disputes should be made a priority, Lagarde stressed.
In addition, the head of the IMF referred to the threats to the growth of the world economy low-interest rates. Despite the “cautious signs of stabilization” that the world economy is showing, debt levels are rising in many advanced economies, and emerging markets are still “vulnerable to sudden changes in financial conditions,” Lagarde said in a statement.