Trade war to keep hitting China's economy, International Monetary Fund says

Building Peer Pressure On Everyone To Follow Trade Rules: IMF Chief

IMF: All tools needed to combat weak global growth

"A multipolar world of competing and noncooperating great powers, which seems to be the stated objective of the Trump administration...is a very different world from the world that supported postwar growth over the past 70 years", said Maurice Obstfeld, a former chief economist at the International Monetary Fund.

He went on to say that judging whether or not the US had been successful in its trade war with China would involve looking at whether or not it had achieved its aims of tackling "unfair and damaging practices", such as forced technology transfers.

Speaking to El Pais about tax systems around the world, the IMF's Gita Gopinath said they "could be more progressive" in some countries, adding that equal opportunity in health and education was absent "even in the most developed economies in the world".

This dichotomy between hard data and sentiment readings could be driven by worries over negative headlines or uncertainties about trade and geopolitical tensions, she said, which cause people to believe a recession is about to hit the US economy.

While the United States has outshined other industrialized economies this year, there are increasing signs that Trump´s trade wars have wounded American industries, with manufacturing and agriculture badly damaged, exports weakening and investments by businesses sharply curtailed.

She also said the US tax system could be "more progressive" and encouraged authorities to improve access to healthcare and high-quality education.

While the International Monetary Fund has likewise called for greater stimulus, it also downgraded its global economic forecasts for the fourth straight quarter, citing Trump´s trade wars as a principal cause of weakness. "Policymakers must take seriously their commitments to worldwide cooperation in trade".

One of China's most influential central bank officials disclosed on Saturday that the major risk factors facing the world economy are the escalation of trade disputes and policy uncertainties.

World Bank President David Malpas said the financial discussions this week focused on how to address multiple challenges. The United States' ongoing trade war with China continues to negatively impact producers, exporters and consumers throughout Washington and the rest of the nation. "What the meetings clearly indicated was a shared concern of the membership of the increased uncertainty for the global outlook in the world economy".

"Since the beginning of the year, the People's Bank of China has cut the reserve requirement ratio three times to lower the cost of funds for the banks".

President Trump has repeatedly criticized multilateral cooperation as harmful to US interests, saying past agreements on trade, climate and defense have allowed too many concessions. "It requires consideration, thinking, quiet and measured and rational decisions", she said.

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