Former International Monetary Fund chief Christine Lagarde said the trade dispute between China and the U.S. is the biggest challenge faced by the world economy, according to an article on CNBC’s website.
The ex-French finance minister, who will replace Mario Draghi as European Central Bank president in November, said in an interview that the spat “weighs like a big, dark cloud,” according to CNBC.
“I think trade — threat against trade at the moment — is the biggest hurdle for the global economy, yes, indeed,” she added.
Lagarde submitted her IMF resignation in July, ending her stint as managing director at the Washington-based fund as of Sept. 12. She is set to be replaced by Kristalina Georgieva, the chief executive officer of the World Bank.
Lagarde said the tariffs that the U.S. and China have slapped on each other’s goods are set to shave 0.8% off global economic growth in 2020.
“That’s a massive number,” Lagarde told CNBC. “It’s fewer jobs. It’s less business going on. It’s less investment. It’s more uncertainty," she said.
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