Trade, geopolitical issues pose biggest risk to world economy

Bloomberg

After days of wrangling over the wording of a communique, finance chiefs from the world’s largest economies warned that escalating trade and geopolitical tensions pose the biggest risk to global growth.
Officials said that although growth appears to be stabilising, it “remains low and risks remain tilted to the downside,” according to the statement. “Most importantly, trade and geopolitical tensions have intensified. We will continue to address these risks, and stand ready to take further action.”
Trade issues dominated discussions as officials gathered in the port city of Fukuoka in southwestern Japan. The meeting opened with news of US President Donald Trump’s reversal of plans for new tariffs on Mexico, offering a sliver of good news for officials facing a lengthening worry list.
The gathering also marked the first meeting of top
US and Chinese officials since negotiations between both governments for a trade agreement that collapsed last month.
Treasury Secretary Steven Mnuchin wrote on Twitter that his talks with People’s Bank of China Governor
Yi Gang were constructive and candid.
Behind closed doors, G-20 officials haggled over how to describe their assessment
of key challenges including trade disputes, currencies and climate change.
The language also shifted on currencies. A paragraph that explicitly spelled out the need for countries to avoid competitive devaluations was dropped in preference for a single line reaffirming past commitments.

US-China trade war looms over growth: Lagarde
Bloomberg

The head of International Monetary Fund reiterated her call for US and China to de-escalate their trade war, which she warned is the biggest risk to global economic growth.
The global economy remains “precarious” despite projections for continued growth and early signs of stabilisation si-nce the slowdown, Christine Lagarde said in a statement at the end of G-20 meeting.
US President Donald Trump is rattling financial markets. He hiked tariffs on Chinese products after talks with Beijing broke down, and IMF says tho-
se and retaliatory duties from China could redu-
ce global gross domestic product by $455 billion.