On June 9, the regular G20 summit (the “big twenty”) was held in Fukuoka, Japan. At the conference, a representative of the International Monetary Fund (IMF), Christine Lagarde, made a presentation on current threats to the stability of the global economy.
The main factor that received the most attention was the existing trade conflicts. According to IMF forecasts, the trade conflict between China and the United States can lead to a decrease in world GDP by 0.5% ($ 455 billion) in 2020.
At the moment, the priority objectives of not only these two states, but also of all global financial structures are to develop solutions and come to a compromise in this conflict, Lagarde said
The second threat to the growth of the global economy, the head of the IMF called low interest rates. In recent years, a large number of developed countries have increased the size of their external debt and remain vulnerable to sudden changes in financial conditions.
Recall that the trade conflict between the United States and China significantly worsened in May 2019. After unsuccessful negotiations with Beijing, US President Donald Trump threatened to raise duties on goods from the China to 25%. A certain resolution of the conflict is possible at Trump’s next meeting with Chinese leader Xi Jinping, which is scheduled to take place in Osaka in Japan at the end of June.