MNI Policy: IMF Lagarde Says Trade War May Cost China 0.6% GDP

By Iris Ouyang

     BEIJING (MNI) - The ongoing trade war between the two largest economies may

reduce China's growth by 0.6 percentage point in 2019, Christine Lagarde,

managing director of the International Monetary Fund told reporters in Beijing

on Tuesday.

     China's growth next year may slow to 6.2% from forecast 6.6% this year,

Lagarde said. The trade conflict may also slow U.S. growth by 0.2 percentage

point, Lagarde said. 

     Lagarde, sitting next to Chinese Premier Li Keqiang, praised China for

having made the right moves to rebalance its economy, including slowing its

credit growth, address financial risks and further opening up its economy.

Growing trade tensions, effects from monetary policy adjustments and turbulences

in the emerging markets are some of the factors clouding global outlook, Lagarde

said. 

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com

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