Protectionism and trade war are the most real threats to the world economy today, said International Monetary Fund (IMF). Caused of the facts, the Fund cut its global economic growth forecast in 2019.
The IMF predicts this year’ global economic growth of 3.5%, lower than 2018 at 3.7%. It said, current global economic conditions are influenced by two major players in the world economy, the United States (US) and China, which are responding to conditions of imbalance.
On the one hand, the US is experiencing a deficit and China which has the ability to produce commodities is very competitive. The agency also predicts US economic growth at the level of 2.5%, 19 countries of the euro currency down from 1.8% to 1.6%, developing countries are projected to slow from 4.6% in 2018 to 4.5%.
While China is predicted to slow to 6.2%, from 6.6% last year. The decline is the real impact of the implementation of developed countries’ protectionist systems. Under President Donald Trump’ administration, the US has implemented import tariffs for steel, aluminum and hundreds of Chinese products, which it’s trading partners also responded to.
