IMF Managing Director: "Uncertainty Reduced by US-China Agreement but Much Remains to Be Done"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), stated on the 17th (local time) that while uncertainty has decreased regarding the signing of the Phase One trade agreement between the United States and China, there is still a long way to go to resolve the dispute.

According to AP and AFP, Georgieva said at an event hosted by the Peterson Institute for International Economics (PIIE) that the Phase One trade agreement between the US and China has reduced but not eliminated the uncertainty that has slowed global economic growth.

She said, "A trade truce is not the same as trade peace," adding, "There is still more work to be done to heal the rift between the world's two largest economies."

Georgieva noted that the agreement between the US and China will ensure China's 6% growth this year, and she shared this outlook with Liu He, Vice Premier of China. According to the National Bureau of Statistics of China, China's gross domestic product (GDP) growth rate for 2019 was preliminarily estimated at 6.1% year-on-year.

The IMF had forecasted in September last year that tariffs imposed or announced mutually by the US and China could reduce global GDP by 0.8% by early next year.