US-China trade war escalation could knock 0.4pp off world GDP by 2020 - Fitch
|In its latest report, the US-based Fitch ratings highlighted that the US-China trade war escalation could knock 0.4pp off the world GDP by 2020.
Additional Points:
China's growth rate would be reduced by 0.6pp, and US growth by 0.4pp, in 2020.
Global GDP growth would slow to 2.7% this year and 2.4% next year.
Imposition of tariffs on all imports from China being considered by the US administration would mark a significant escalation of trade tensions.
For China and the US, tariffs would feed to lower export volumes, higher import prices, with latter raising firms' costs, reducing real wages
Export competitiveness in countries subject to tariffs would decline.
Import substitution would offset some of growth shock in countries imposing import tariffs.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.