US President Joe Biden’s meeting with Chinese leader Xi Jinping was a “very constructive” signal that could ease trade tensions between the world’s two largest economies, said the managing director of the International Monetary Fund (IMF). IMF), Kristalina Georgieva, this Wednesday (16).
Leaders of major economies have issued a “strong call” for an end to Russia’s war in Ukraine, in part because the conflict is the biggest single factor slowing the global economy, Georgieva told Reuters at the end of a controversial G20 summit.
But the meeting between Biden and Xi sent “a very meaningful message to the world that international cooperation is important for all of us,” Georgieva said.
She noted that the IMF had warned that growth would suffer if the world fragmented into geopolitical blocs led by the United States and Western allies on one side and China and other state-led economies on the other, with competition from technology and other factors. That would reduce the output of global GDP by $1.4 trillion to $3.5 trillion, the Fund estimates.
“Imagine what the world can do with that kind of money,” said Georgieva.
“And in a time of high inflation, that’s less desirable,” Georgieva said when talking about US tariffs imposed on China. “Furthermore, China recognizes that there has to be a trust in mutual cooperation because we see the Chinese economy in a very difficult situation.”
Source: CNN Brasil
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