Reuters: the World economy will lose $850 billion

Reuters: Мировая экономика потеряет $850 млрд

Trade disputes between China and the U.S. threaten the global economy

The Agency has estimated the damage from the trade dispute between Washington and Beijing, which lasts from 2018.

By the beginning of next year, the trade policy uncertainty caused by the differences in the US and China, could lead to the fact that the world economy will lose about $ 850 billion. This September 5, reported by Reuters on the basis of the analysis conducted by the Federal reserve system of the USA.

According to the researchers, which, in particular, analyzed newspaper articles, the uncertainty of trade policy, “has risen to levels not seen since the 1970-ies”.

They also appreciated the force of impact of uncertainty on economic activity, as companies reduce production rates and reduce investment. The researchers came to the conclusion that on a global scale, its impact will be about 1% of GDP.

According to estimates by Reuters, now the US GDP is estimated at about 20 trillion dollars, and global GDP is about 85 trillion dollars.

The influence of 1% will lead to loss in trade in the United States at the level of $ 200 billion to GDP and 850 billion to global GDP.

We will remind, the trade war between the US and China broke out in 2018, after the us President Donald trump began to introduce import duties on Chinese goods. Beijing replied to Washington mirror.

The parties repeatedly negotiated the resolution of the situation, but at the moment have not reached agreements.

The trade war. China’s economy fell to 1992

Earlier, the IMF urged China and the US rather to conclude a trade agreement so as not to undermine the world trading system.

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