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The International Monetary Fund, in a report released last week, warned that further escalation of trade wars between the United States and China could have major repercussions in both countries next year.
The IMF notes that China’s growth could become the biggest casualty due to the trade wars. The world economy could also suffer as a consequence.
Based on the trade tariffs that are already in place, the IMF revised down the global growth estimates by 0.2 percentage points. Still, the global economy is expected to rise at a healthy pace of 3.7%.
The IMF said that assuming the United States administration imposes fresh tariffs on all imports from China, the effect of this on the business and consumer confidence along with a negative financial market could shave off more than 0.9 percentage points from the U.S. GDP for 2019.
The U.S. President Trump had threatened on various occasions to impose a blanket tariff on all imports from China.
For China, it could potentially shave off ...
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