IMF warns threat from trade conflict a risk to US economy

Managing Director of International Monetary Fund (IMF) Christine Lagarde

Media IN WASHINGTON, 7th June, 2019 (WAM)

The International Monetary Fund  in its annual review of the US economy, warned that “material risks” overshadow the outlook, including trade uncertainty, rising debt levels and growing inequality.

It is especially important that the trade tensions between the US and China — which represent a threat to the global outlook and create important negative spillovers to other countries — are quickly resolved.

For now, US data is showing little impact on the overall economy but global financial markets have been shaken by the trade conflict and the US Federal Reserve this week opened the door to cutting interest rates to salvage growth.

The IMF upgraded its forecast for US growth this year to 2.6 percent, three tenths higher than it predicted in April, while growth in 2020 is seen slowing to just under two percent