International Monetary Fund (IMF) Chief Kristalina Georgieva warned that “Trade disputes could reduce global GDP by 1.5 percent, the cost of which would be 1.4 trillion dollars”.
Kristalina Georgieva, the head of the International Monetary Fund (IMF), said that trade barriers implemented against China and other countries last year could cost the global economy up to $ 1.4 trillion. Adding to the heavy damage caused to the economy by the war in Ukraine, the trade war could be a big burden for the economy, she said.
Georgieva explained following to the media, “What I hope to see is some return globally on the issue of China and in the policy blocs. The world will lose 1.5 percent of its gross domestic product (GDP) due to the divergence that could divide us into two trading blocs. This is equivalent to $ 1.4 trillion,” he said.
IT WILL AFFECT ASIAN COUNTRIES MORE
Georgieva, speaking on the sidelines of the economic leaders of the Asia-Pacific Economic Cooperation meeting in Thailand, noted that the potential loss for Asia could be twice as bad, as the region is more integrated into the global value chain, and it could harm the region’s GDP by more than 3 percent.
According to recent reports, US trade officials are demanding that the EU impose certain export restrictions on China. Many export restrictions imposed on Russian companies due to the Ukrainian War are also imposed by the US on Chinese companies due to ‘national security’ concerns.
