Increased tariffs to damage global GDP: IMF managing director

2018-07-25 13:55:39

BUENOS AIRES - Managing Director of the International Monetary Fund (IMF), Christine Lagarde, has reiterated the risks that protectionist trade policies will have negative impacts on world economy.

During a Saturday press conference here in the Argentine capital, Lagarde noted recent global Gross Domestic Product (GDP) forecasts amid the United States application of heavy tariffs being placed on various foreign imports.

Lagarde said that the IMF has analyzed the hypothetical consequences of trade restrictions due to tariffs and said that "everything indicates" the global GDP would be negatively affected.

The director reported that the institute was working "with interested parties" on a study to analyze repercussions from the tariff measures.

The IMF recently predicted that global GDP growth would be cut by 0.5 percent by 2020 if all the threatened tariffs were implemented.

Lagarde said that the US economy would also suffer, describing it as "vulnerable."

The director was in Buenos Aires to participate in the Third G20 Meeting of Finance Ministers and Central Bank Governors.