Although it has succeeded in delaying a trade war between China and the US, global economic outlook remains low. (Credit : REUTERS)

Although The Trade War Has Been Postponed, Global Economy Is Still Sluggish

Siti Fatimah Adri
Politics & Economic
Economic
Jul 01, 2019
2614
Negotiations about trade war by US President Donald Trump and Chinese President Xi Jinping at the G20 summit in Osaka, Japan, last weekend didn’t necessarily change the global economic outlook. This was confirmed by Moody's, an international rating agency.

They said although it has succeeded in delaying a trade war between China and the US, global economic outlook remains low. Even so, Moody's still stated that the agreement on trade negotiations between US and China obtained at yesterday's G20 meeting could ease negative sentiments in financial markets. In addition, it also can encourage economic growth in the short term.

In their official statement, Moody's said that they viewed the tariffs applied to date to cut 0.1 percent of US economic growth and 0.2 percent for the Chinese economy this year. Moody's also hopes that China will continue to loosen policy so that it can offset impact of the existing tariffs. In addition, they can maintain their bias with more accommodative policies.

In a previous G20 summit, US president Donald Trump said that he would delay additional tariffs of US $ 350 billion for Chinese imported products. Trump said that he would work to continue what hadn’t been completed before.

Trump also claims that China has agreed to buy agricultural products from the US. Therefore, in the near future, US will provide a list of export products that China can buy. Trump believes that this agreement will greatly help farmers from the US.

Source: https://www.cnnindonesia.com/ekonomi/20190701100437-532-407876/trump-tahan-perang-dagang-prospek-ekonomi-dunia-masih-lesu