Trade tensions between the US and China, the world's two largest economies, are an important source of risk for the global economy and have a "real spillover effect" on emerging markets, senior international Monetary Fund officials said on Wednesday.
Tobias Adrian, head of IMF's money and capital markets department, told reporters that the tit for tat trade war between China and the United States has had a significant impact on financial markets in the past two years. Another IMF official said the dispute could have a "domino effect" on smaller economies.
"We urge policymakers around the world to continue to work together to address these trade tensions, as they are an important source of uncertainty and a significant source of downside risks to the economy," he said. "They do have spillover effects on emerging markets."
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