Emerging Markets Threatened By US-China Trade War: Lagarde
Umer Jamshaid 2 months ago Wed 12th September 2018 | 03:09 AM
Washington, Sept 11 (UrduPoint / Pakistan Point News, app - 12th Sep, 2018 ) :The intensifying trade war between China and the United States could "shock" emerging markets that are already in danger, the head of the International Monetary Fund said in an interview published Tuesday.
If the world's largest two economies continue on this course, it could have a "measurable impact on growth in China" and could "trigger vulnerabilities" in neighboring Asian economies whose supply chains are closely linked to Chinese industry, Lagarde told the newspaper.
Some emerging economies find themselves in precarious situations, with currencies weakening in part due to the strong US dollar and investors looking instead to the United States, where benchmark lending rates are steadily rising.
Earlier in the year, Lagarde had already warned against the dangers of a global trade war, hammering the argument that trade in goods and services was a driver of global growth.
She also said a key risk was weakening investor confidence.