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Phase one trade deal between US and China will help global economy:IMF

The first phase of the US-China trade deal signed yesterday will help reduce the uncertainty that has impeded global economic growth, International Monetary Fund (IMF) Managing Director Kristalina Georgiev said.

“The deal will help China revive its Gross Domestic Product(GDP) to 6 percent in 2020 rather than keeping it below the proposed mark,” she said. The dwindling US economy will also get a chance to enter stable grounds with the deal.

n October, Georgieva warned that trade tensions were “taking a toll” on global growth, at a time when the global economy was going through a “synchronized slowdown”. According to the IMF’s earlier calculation, the cumulative effect of the US-China trade conflict, provided no actions taken, could mean a loss of 0.8 percent of global GDP, or around $700 billion by 2020.

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