The G20 said on Friday that global economic growth was spreading late last year and early this year due to increased trade tensions, turbulent financial markets and rising interest rates.
The IMF cut its global growth forecast from 3.6% last year to 3.3% in 2019, the slowest since the 2009 recession, but predicts growth will return to 3.6% in 2020
Haruhiko Kuroda, the head of the Japanese Bank, told reporters on Friday that the G20 IMF representatives revised the IMF forecast as "very likely," but said all parties would have to make their part to stimulate growth.
The forecasts are worried about the trade conflict between the US and China. The two largest economies in the world have hit 350 billion dollars worth of goods. They are fighting for American allegations that China has predatory tactics ̵
Changyong Rhee, director of the Asia-Pacific Department of the International Monetary Fund, said at a briefing Friday that markets could fail, if the negotiators ultimately fail to reach an agreement. China's trade deal may create new problems, Ree said.
If the Chinese agree to take more imports from the United States, as is widely expected, these purchases may come at the expense of other countries doing business with China. Rhee also expressed concern that China would give American companies "preferential access", undermining other countries and leading to "wider concerns" about the future of free trade.
Rhee also said peace between the United States and China could be "short-lived." "If the two sides can not reach a long-term deal that will require Beijing to improve the protection of intellectual property and make other economic reforms.