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WASHINGTON, Nov. 28 (Xinhua) – In the run-up to the upcoming G20 summit in Argentina, Christine Lagarde, Executive Director of the International Monetary Fund (IMF), called for swift joint action to reduce trade barriers and improve the global trading system.
In a blog article published on the IMF's official website, Lagarde said the rising trade barriers were counterproductive. "It is imperative that all countries avoid new barriers while reversing recent customs measures."
In a monitoring note prepared for the upcoming G20 summit, the IMF also stressed the "urgent need" to defuse trade tensions and modernize the global trading system.
The IMF's report on the global economic outlook, released in October, forecasts global growth of 3.7 percent for 2018 and 2019, down 0.2 percentage points from July's initial estimates, mainly because of rising global economic growth. external and financial pressures in emerging markets and a "tangible" increase in trade tensions, Lagarde said.
Citing data from an IMF study, she pointed out that the liberalization of trade in services could, in the long run, save about $ 350 billion, or 0.5% of gross domestic product (GDP), G20, made up of the 20 largest economies in the world.
In addition to trade efforts, the renewal of multilateral cooperation is also needed to reduce external imbalances, avoid a return to post-crisis progress in financial sector regulation, coordinate aid to low-income countries other global challenges such as climate risks and international taxation, said the IMF in its watch note.
Highlighting "dark clouds" hovering over the global economy, Lagarde said tackling these challenges meant implementing policies that made sense both nationally and internationally. "Teamwork is the winning tactic," she said.
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