Tit-for-tat tariffs between the U.S. and China could reduce global economic output by 0.8% in 2020 and lead to additional losses in the years to come, the International Monetary Fund said.
Trade tensions are "actually now beginning to weigh down the dynamism in the global economy," IMF spokesperson Gerry Rice said at a press briefing Sept. 12. Rising trade and geopolitical tensions have taken a toll on business confidence and investment, among others, he added.
The IMF previously said in June that the trade war between the world's two largest economies could reduce global GDP in 2020 by 0.5%, or $455 billion. The fund's updated forecast, which takes into consideration tariffs that have already been implemented and announced, will be released in October as part of its latest World Economic Outlook report, Rice said.
Separately, Rice said the IMF Executive Board plans to meet with Kristalina Georgieva, the EU-nominated candidate to succeed Christine Lagarde as the fund's managing director, on Sept. 24. The board is expected to make its decision by Oct. 4.
