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.
In an exclusive interview with Caixin in Washington on Monday, IMF Managing Director Kristalina Georgieva said she expects the agreement between the two countries to boost China’s growth to around 6% next year, up from the IMF’s previous estimate of 5.8% made in October.
The IMF estimated in October that the trade war between the US and China could mean the loss of around $700 billion, or 0.8%, 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.”
US Trade Representative Robert Lighthizer said that he expects the phase one deal to be formally signed in early January, but added there’s no date set for second stage negotiations. He added that any second phase negotiations is going to be determined by how the phase one agreement is implemented and the phase one agreement needs to be implemented “right down to every detail.”