Bali, 16 November 2022 (TDI): According to International Monetary Fund Managing Director Kristalina Georgieva, the meeting between US President Joe Biden with Chinese President Xi Jinping was a positive indicator that might improve trade relations between the two world’s most powerful economies.
According to Georgieva, as the G20 meeting concluded, the top economic states strongly appealed to end the Ukraine war with Russia, partly because it is the single most significant thing dragging down the world economy.
But according to Georgieva, the Biden-Xi summit conveyed a strong message to the globe that international collaboration is crucial for all the states.
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While highlighting IMF concerns, she said that if the world is divided into geopolitical blocs led by these two big economies, with competing standards for technology and other elements, global growth will suffer.
This global disintegration will result in a $1.4 trillion-$3.5 trillion drop in global GDP production.
She told customers in the United States have paid hundreds of billions of dollars in tariffs on Chinese goods.
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China recognizes that there must be a reliance on collaboration since the Chinese economy is in a hazardous situation at a time of growing inflation, which is not desirable.
Georgieva appreciated the G20 leaders’ joint declaration that urged central banks to manage the speed of interest rate rises to minimize spillovers to other nations.
She added that inflation has skyrocketed in many developing market nations because of the dollar’s tremendous strength.
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