IMF head says more needed to boost growth than US-China deal

IMF head says more needed to boost growth than US-China deal
International Monetary Fund (IMF) Managing Director Kristalina Georgieva speaks during a news conference during the World Bank/IMF Annual Meetings in Washington, Thursday, Oct. 17, 2019. (AP Photo/Jose Luis Magana)

WASHINGTON (AP) — The International Monetary Fund’s new leader says a trade truce between the United States and China could trim expected losses to the world economy but won’t be enough to produce strong global growth.

Before last week’s tentative trade agreement, the IMF had estimated that higher trade tariffs would mean eight-tenths of a percentage point of lost economic input by the end of next year. The IMF’s managing director, Kristalina Georgieva, now says a new estimate that factors in the U.S.-China deal slightly reduces that lost input, to a still-significant 0.6%.

She says more must be done by the world’s two biggest economies to resolve their disputes, and all countries must try to overhaul trade rules.

She says “our hope is to move from a trade truce to a trade peace.”