US-China trade war hits economy harder than coronavirus

The first G20 Finance officials' meeting in Riyadh in 2020 was focused on the coronavirus impact on the world economy. "At the beginning of this year, the International Monetary Fund (IMF) kept its forecast for China's 2020 economic growth unchanged at 6%. Now the forecast has been adjusted to 5.6%. Global economic growth forecasts for 2020 have been revised down by to 0.1%," RISS expert Nikolai Troshin said.

IMF Managing Director K.Georgieva draw attention to the fact that G20 should focus on global trade problems, climate change, and inequality. RISS expert recalled that the difficulties in international trade were directly related to the Washington's stance. The United States refuses to take part in the new arbitration system of the World Trade Organization (WTO). This hinders the WTO's normal functioning and development of economic activity. According to the IMF, the US-China confrontation lowered the world's economy by 0.6% of GDP per year.

As for the climate change discussion at the summit, Troshin also noted the difficulties of selling natural gas due to global warming and natural disasters that were a great economic threat. Also, the situation of socio-economic inequality in different states has been worsening over the past twenty years. "By the reason of the rapid growth of the economies in developing countries, inequality between states is decreasing, but at the same time inequality within states is rising. This is a big concern for the IMF. Economic growth should create opportunities for everybody. We can create a sustainable progressive development that is not associated with economic shocks only on this basis," Troshin concluded.

coronavirus economy