[ad_1]
* Global growth should rebound in the second half of 2019 – Kuroda
* Adding uncertainty remains on the outlook, especially on the trade
* Kuroda welcomes Trump's decision to defer tariffs to Mexico (Adding quotes, details)
By Leika Kihara
FUKUOKA, Japan, June 8 (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Saturday that the global economy will recover in the second half of this year, but warned that Sino-US trade war were intensifying.
Kuroda said the global economy "was stabilizing a bit" after the weakness of his company late last year, while central banks maintain supportive policies and that China is taking stimulus measures to support growth.
"The vision of the global economy will not change for the end of this year," Kuroda told reporters ahead of the Group of 20 financial leaders' meeting in Fukuoka town in the south. from Japan. "But uncertainties remain, especially regarding trade," he added.
Kuroda's view on global risks is important because the BOJ's forecast of the Japanese economy is based on the badumption that global growth should rebound in the second half of this year.
Global investors' hopes of a recovery in the second half of the year have been questioned by the sudden escalation of the US-China trade war last month and by a series of weak data provided by major economies that threaten to weigh more heavily on business and safety. consumer confidence.
The fallout from the US-China trade war will test the willingness of G20 financial leaders to show a united front at their two-day meeting that will end on Sunday, as investors fear not be able to avoid a global recession with increasingly thin ammunition.
The Bank of Japan is one of the major central banks likely to be put under pressure to implement its already ambitious stimulus package, while the trade dispute is fearing a global recession.
Kuroda praised US President Donald Trump's decision to delay tariffs on Mexico after an agreement was reached between the two countries to limit the migration of immigrants crossing the US border.
"This is a very good result, not only for the United States and Mexico, but for the global economy," Kuroda said.
Reportage of Leika Kihara; Edited by Chris Gallagher & Kim
Coghill
Source link