The new head of the International Monetary Fund, Kristalina Georgieva has warned on the rise of ‘protectionism’, saying the US-China trade dispute has dragged down the global economy.
Kristalina Georgieva became the IMF Managing Director earlier this month.
She points out, the damage caused by the spat between Washington and Beijing has led to a 0.8 percent shrinkage in the Global Gross Domestic Production, over the past year.
Georgieva observes, free trade has contributed to reducing poverty, improving the standard of living, and bringing about peace after World War Two.
Commenting on crypto-currencies – such as Facebook’s Libra – she said, regulators in every country need to focus on making sure that these digital currencies are used securely.
China’s economy reportedly grew at its slowest pace since the early 1990s, in the third quarter.
In the three months to September, the economy expanded 6 per cent from a year earlier, falling just short of expectations for a 6.1 per cent growth.
The slowdown comes, as China battles a raft of economic challenges, including a damaging ‘trade war’ with the US.
The government has moved to boost the economy, with various measures including tax cuts.
The strength of the Chinese economy is closely monitored, since slowing growth can have far-reaching consequences on the global economy.