WASHINGTON, Dec. 2, 2018 (BSS/Xinhua) – International Monetary Fund (IMF)
chief Christine Lagarde on Saturday said there is “an urgent need” to de-
escalate trade tensions, reverse recent tariff increases and modernize the
rules-based multilateral trade system.
In a statement issued at the conclusion of the Group of 20 (G20) Summit in
Buenos Aires, Argentina, Lagarde reiterated her staunch opposition to trade
barriers, noting that the choice is “especially stark” regarding trade.
The IMF estimate that, if recently raised and threatened tariffs were to
remain in place and announced tariffs were implemented, about 0.75 percent of
global gross domestic product (GDP) could be lost by 2020. If, instead, trade
restrictions in services were reduced by 15 percent, global GDP could be
higher by 0.5 percent.
“Pressures on emerging markets have been rising and trade tensions have
begun to have a negative impact, increasing downside risks,” said the IMF
managing director.
“The choice is clear,” Lagarde said. “Fix trade — this is priority No. 1
to boost growth and jobs.”
Besides trade tensions, the IMF chief also highlighted another “urgent
issue” — the excessive level of global debt, about 182 trillion dollars by
estimate of the multilateral lender.
“It is important, particularly for highly indebted emerging-market and low-
income countries, to rebuild buffers and reverse procyclical fiscal
policies,” Lagarde said, adding that increasing debt transparency is as
important as supporting debt sustainability.
The IMF chief pointed out that global growth, though remains strong, is
moderating and becoming more uneven.
She also suggested G20 members, who represent some 85 percent of the global
GDP, to continue to normalize monetary policy in a “well-communicated,
gradual, data-driven manner,” use micro- and macro- prudential tools to
address financial risks, among other measures.