THE new head of the International Monetary Fund applauded the phase one trade deal between China and the US as a "very positive step" for both countries and the world economy, and called for continuous discussions on broader policy topics, reported Caixin.
IMF managing director Kristalina Georgieva said she expects the agreement between the two countries to boost China's growth to around six per cent next year, up from the IMF's previous estimate of 5.8 per cent made in October.
The IMF estimated in October that the trade war between the US and China could mean the loss of around US$700 billion, or 0.8 per cent, for the global economy by 2020. But Georgieva also warned that this is just a trade truce. "To sustain the positive impact for the world, we need to go from trade truce to trade peace."
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