US-China trade spat a risk to global economic outlook

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US-China trade spat a risk to global economic outlook
Christine Lagarde says the IMF expects the world economy to bounce back in 2020.

Tashkent - Growth could also slow further due to potentially disorderly Brexit: Lagarde

By Reuters

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Published: Sat 18 May 2019, 5:33 PM

Last updated: Sat 18 May 2019, 7:36 PM

The trade war between the United States and China could be a risk to the world economic outlook if it is not resolved, International Monetary Fund managing director Christine Lagarde told Reuters during a visit to Uzbekistan.
"Obviously, the downside risk that we have is continued trade tensions between the United States and China," Lagarde said, referring to the IMF's world economic outlook. "And if these tensions are not resolved, that clearly is a risk going forward."
The IMF last month cut its growth forecast for 2019 to 3.3 per cent, down from the 3.5 per cent it had previously predicted.
It warned at the time that growth could slow further due to trade tensions and a potentially disorderly British exit from the European Union.
"But we expect that at the end of 2019 and in 2020 it will bounce back," Lagarde said of the world economic outlook.
The US infuriated China this week when it announced it was putting Huawei Technologies, the world's biggest telecoms equipment maker, on a blacklist that could make it hard to do business with US firms.
On Friday, Beijing suggested a resumption of talks between the world's two largest economies would be meaningless unless Washington changes course.

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