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IMF warns US about trade risks and financial vulnerabilities

06 June 2019 19:24 (UTC +04:00)

The International Monetary Fund (IMF) on Thursday warned the United States that escalating trade disputes or an abrupt downturn in financial markets could pose substantial risks for the US economy, APA reports citing Reuters.

The international lender, in a review of US policies, said the US economy was on track to grow 2.6% this year. That was quicker than the IMF’s 2.3% growth forecast from April and was boosted by easy financial market conditions. But the US financial system appears increasingly vulnerable and financial conditions could tighten as investors worry more about America’s trade disputes, IMF officials said.

“That is the risk we are most concerned about for the US economy,” said Nigel Chalk, the IMF’s mission chief for the United States.

In its report, the IMF criticized the Trump administration’s efforts to overhaul global trade relationships by raising tariffs and said it was especially important to resolve a trade dispute with China. That dispute poses a threat to the global economy, the IMF said.

Trump has hiked tariffs on billions of dollars in Chinese imports and last week threatened to raise tariffs on all Mexican imports if Mexico doesn’t crack down on illegal immigration into the United States.