What seems a veiled attack on US President Donald Trump, International Monetary Fund Managing Director Christine Lagarde said that the risks to the global economy are rising and clouds are getting darker day by day. “The clouds on the horizon that we have signalled about six months ago are getting darker by the day — and, I was going to say, by the weekend,” Christine Lagarde told Bloomberg following a two-day meeting of the G7.
The IMF chief said that the risks to the global economy are rising as major industrial nations sharpen threats of a trade war. Christine Lagarde did not take name of with Donald Trump or the US. After leaving the G7 summit early Donald Trump said that he was pulling the US support from a joint statement and accused Canadian Prime Minister Justin Trudeau of being “weak and dishonest”.
She said that there are risks on the global economy confidence by attempts to challenge the way in which trade has been conducted, in which relationships have been handled, and the way in which multilateral organizations have been operating.
Christine Lagarde’s concerns were echoed by World Trade Organization Director-General Roberto Azevedo, who said growing trade frictions could cause serious damage to the world economy. Recently, Donald Trump’s decision to impose trade tariffs on even allies — Canada, Mexico and the European Union — was received with sharp criticism and threat of retaliatory tariffs. Justin Trudeau said that the Canada has imposed trade tariffs on the US from July 1.
“The rising trade tensions that we see before us, they risk a major economic impact, undermining the strongest sustainable period of trade growth since the financial crisis,” Bloomberg reported quoting Roberto Azevedo as saying.
Source: Financial Express