A removal of all tariffs that Washington and Beijing had inclined on each other’s exports since early 2018, could have buoyed up the global economic output by 0.8 per cent by the end of 2020, the Chief IMF (International Monetary Fund) economist, Gita Gopinath, 47, an Indian-American Professor of International Studies and Economics at the Harvard University, hailing from Kolkata, India, said on Tuesday, the 15th of October 2019.
On top of that, adding much had been depending upon the details of a partial trade accord reached between the United States and China on last Friday (October 12th), Gita Gopinath had also added that the global GDP (Gross Domestic Product) would face off a steep shortcoming of 0.80 per cent, if Beijing and Washington decided to go-ahead with the tariff hikes slated to take place on October 15th and 16th, while the impact would be limited to a worldwide economic contraction of 0.60 per cent if the nations could reach a ceasefire on added levies.
Meanwhile, adding that the global economy had been witnessing its steepest downward spiral, extent of which had never been seen since the era of great financial depression of 2008-2009 amid US President Trump’s trade rows on multiple fronts, the chief IMF economist Gita Gopinath said on Tuesday (October 15th), “Based on what we have right now, if all the tariffs would come off - the ones that were put in place in 2018 and 2019, including those announced - we would be talking about a boost to the level of global GDP by 0.8% by the end of 2020.
It’s very important that these changes - the trade truce - has a feature of being permanent and durable. ”