The new European Central Bank (ECB) President, Christine Lagarde, said that threatening trade is the biggest hurdle for the global economy.
For the new ECB president Christine Lagarde, the US-China trade war is the biggest threat to the global economy.
The trade war will eliminate 0.8% of global economic growth in 2020
Lagarde, who has run the IMF since 2011 and was chosen in July to replace Mario Draghi in early November, said that the tariffs imposed by the United States and China on each other’s goods would erode 0.8% of global economic growth in 2020.
“This is a huge number,” Lagarde said in an interview adding that “This means fewer jobs, less work and investment, and more uncertainty. It’s like a big dark cloud for the global economy”.
“I think the threats to trade are the biggest hurdle for the global economy,” Lagarde added.
Trade negotiators from the United States and China are due to resume trade talks next month in Washington.
In the past year and a half, tariffs have disrupted financial markets and raised worries about the global recession.
“The longer it goes, the greater the uncertainty would be. If you are an investor, if there is a company, whether small, medium, or large, you will not invest and you will not wait”.