FX.co ★ Trade wars to cut $430 billion off global economy

The global economy could lose $430 billion by 2020 because of trade wars, International Monetary Fund chief Christine Lagarde said.

The global GDP could decrease by 0.5% in two years in case all the tariffs threats and retaliation are implemented, Lagarde stressed.

Another scenario suggests that full-blown trade wars would shave 0.1% off the global economy in 2020. According to Lagarde, the world economy has already experienced the negative impact of trade disputes. The IMF president expects the situation with the global trade to stabilize, despite current issues and aggravating problems in emerging markets.