WASHINGTON, Oct 12 – โขinternational Monetary Fund (IMF) Managing director โฃKristalina Georgieva expressed hope on Thursday for a de-escalationโฃ ofโฃ tensionsโค between the United states andโ China, warning that continuedโ frictionโ between the worldS two largest economies poses a meaningful risk to โglobal economic stability.
georgieva’s comments come amid heightened geopolitical โคconcerns and ongoing โคtrade โdisputes, โraising fears of โคa slowdown in global growth.The IMFโค chief emphasized โthe interconnectedness of the U.S.and Chinese economies, statingโค that a further deterioration in thier relationship โcould disrupt supply chains, dampen โinvestment, and ultimately impact global output. “We are hoping toโ see easing โขof tensions between the US and China,” Georgievaโ said during aโ press conference at โthe IMF’s annual meetings. “Fragmentationโฆ is a major risk to the โworld economy.”
The IMFโ recently lowered its global growth forecast for 2023 to 3.0%, โciting factorsโ including the war in Ukraine, high inflation, and tighteningโ monetary policy.Further escalation of โU.S.-China tensions could exacerbate these challenges,possibly pushing โthe global economy closerโค to recession. According to IMF estimates, a significant decoupling of the U.S. and โChinese economies โcould reduce global GDP by as much as โข2.5% in theโ long run.
Georgievaโข highlighted the importance of internationalโ cooperation in addressing โglobal economic challenges. She urged both the U.S. and China to prioritize dialog and find common ground, emphasizing that a stable and โคpredictable globalโข economic habitat is crucial for sustainable growth โฃandโค prosperity. The IMF is actively โฃmonitoring the situationโค and stands ready to provide policy adviceโฃ and support toโฃ its member countries.
