IMF: US Tariffs Will Moderately Slow Chinese Economic Growth

IMF: US Tariffs Will Moderately Slow Chinese Economic Growth

Trade tariffs imposed by the United States against Beijing will moderately slow Chinese economic growth this year, the International Monetary Fund (IMF) said in a new report on Friday.

“Growth is projected to moderate to 6.2 percent in 2019 as the planned policy stimulus partially offsets the negative impact from the US tariff hike on $200 billion of Chinese exports,” the IMF said and even Russian media reported.

The IMF noted that the Chinese economy is facing external headwinds and an uncertain environment. The Fund also said that rising food prices led to inflation, which is expected to remain at 2.5 percent, Russian Sputnik News reported.

The Fund called on Beijing to solve tensions with Washington “through a comprehensive agreement that avoids undermining the international system.” However, the Fund found progress in China’s reforms in key economic areas.

“The strengthening of financial regulations and control over off-budget local government investment has reduced the pace of debt accumulation, helping contain the build-up of risks in the financial sector,” the report said. “Opening up continued, with decreases in tariffs, passage of a new foreign investment law, and revisions to the negative list for foreign investment entry.”

The IMF urged China to implement further structural fiscal reforms. This policy can enhance medium-term growth.

Tamara Kuzmanovic

Writer and journalist for Serbian, Swiss, Japanese and Singapore media since 1996. A former correspondent from the United Nations in Geneva. Based in the Serbian capital Belgrade I've also lived in Switzerland for 12 years. Graduated from College for marketing communication with a degree in advertising, English and public relations. My father was a Serbian MP and Belgrade University professor.

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