Washington/ Beijing: The ongoing trade war between US-China is no longer a mere threat to the global trade war crisis. The impact of this war on the economy is already visible,’ saying, so the International Monetary Fund has predicted a decline in the global economy next year by 0.8 %. For the second time in a row over a month, the International Monetary Fund (IMF) has warned about the economic recession consecutively for the second time has garnered attention.
The international economic condition has not slightly improved. The trade war and geopolitical tensions have escalated immense uncertainty. This has simultaneously affected the credibility of investors and trade is also undergoing a recession. The global economy may suffer a downfall of 0.8% by 2020 owing to US-China trade war. Gary Rice, the spokesperson of IMF, had alerted that the consequences of the trade war will be apparent.
At this time, the spokesperson of the Coinage pointed out at weak development in the manufacturing sector. Rice stated that the situation in the International segment was similar to the decline seen in the last two years, there has been a decline in the production area on an international level from the year 2007-2008. He claimed that the International Monetary Fund will submit a financial report next month and that the picture of the global economy will be seen more clearly. According to the figures released in July, China’s economy was currently at a three-decade low.
President Trump announced the imposition of additional taxes on all products exported to China. Coinage and other groups have already predicted that these US taxes could hit China’s economy tremendously.
Therefore, in the next few months, China’s economy is likely to decline further. China’s further economic recession could be a big blow to the International economy. At present, China is the second-largest economy in the world and contributes more than 12 % shares in global trade. China is the leading trade shareholder in the world’s leading and emerging economies. All the nations may have to suffer the consequences if there is an onset of turbulence in China’s economy.
Currently, although it is said that China’s economic growth rate is 6.2%, the International Monetary Fund and other global organisations have estimated a further recession below 6% by the end of the year.