Global Growth Outlook Bleak As US-China Trade Conflict Expands - IMF Chief Economist

WASHINGTON (UrduPoint News / Sputnik - 24th August, 2019) The outlook for the global economy is becoming grim with few or no growth prospects as the trade war escalates between the United States and China, International Monetary Fund (IMF) Chief Economist Gita Gopinath said during a press conference on Friday.

"Global growth is subdued and we describe it as fragile," Gopinath said. "As the year is progressing, it's getting harder to find those bright spots... The developments we've seen as recently as today give us great concern about what's going to happen to growth."

Earlier on Friday, Beijing imposed tariffs on $75 billion of US imports and President Donald Trump said he would be taking retaliatory action, including directing all major Federal government and private sector carriers from transporting the drug Fentanyl from China to destinations in the United States.

"There are many downside risks. One of the risks we keep flagging is on the trade front... There was the potential of recovery, and we're still expecting that for many parts of the world... but I've got to admit it's getting harder to see that." Gopinath said.

On Wednesday, the IMF noted in its official blog that China's Currency reflected economic fundamentals in the country and was not under-valued in global markets, thereby rejecting the position of the US Treasury Department that has declared China a currency manipulator.