Global growth is set to fall to its slowest rate since the financial crisis this year, the IMF said on Tuesday, as it warned that the self-inflicted wounds of the US and China’s trade war had created a “precarious” economic situation.
Tit-for-tat tariffs have chilled business confidence and investment, the fund said, leaving global trade in goods almost stagnant and forcing central banks to cut interest rates to shore up growth.
There is an urgent need to cease hostilities and restore confidence to the global outlook, the IMF said in its twice-yearly World Economic Outlook, in pointed comments directed at US President Donald Trump’s administration.
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