IMF: US, China tariffs could lower global GDP by 0.8% in 2020

Following an event hosted by the New York Times on Thursday, the International Monetary Fund (IMF) spokesman Gerry Rice warned that the global GDP could be reduced by 0.8%, in the face of the tariffs imposed or threatened by the US and China.

Key Quotes:

“I don’t see it in U.S. as that big an impact.” 

“World economic activity remained subdued, with trade and geopolitical tensions causing uncertainty and eroding business confidence, investment and trade.”

“Trade tensions .... are not only a threat, but are actually beginning to weigh down the dynamism in the global economy.”

 “U.S.-China tariffs “could potentially reduce the level of global GDP by 0.8% in 2020, with additional losses in future years.”