Fund says easing US-China tensions benefits global economy
WASHINGTON: The International Monetary Fund has welcomed the latest dialogue between US President Donald Trump and Chinese President Xi Jinping, saying reduced tensions between the world’s two largest economies would support global economic stability.
Speaking during a news briefing on Thursday, IMF spokesperson Julie Kozack said constructive engagement between Washington and Beijing remained essential for lowering trade uncertainty and strengthening international economic confidence.
“It’s very important that the world’s two largest economies are engaging at the highest level,” Kozack stated.
Furthermore, she said any progress in reducing trade disputes would positively affect both countries and the broader global economy.
The comments followed Trump and Xi’s summit in Beijing, where the two leaders discussed trade, investment, and geopolitical issues. Although Xi warned that disagreements over Taiwan could create serious tensions, talks on economic cooperation appeared more encouraging than in previous years.
Trump later claimed China had agreed to purchase 200 Boeing aircraft, while US Treasury Secretary Scott Bessent said discussions also covered energy exports, agricultural trade, and new bilateral investment mechanisms.
Middle East conflict raises concerns over global growth
Meanwhile, the IMF warned that the ongoing Middle East conflict and Iran’s closure of the Strait of Hormuz were increasing pressure on the global economy by keeping oil prices above $100 per barrel.
According to Kozack, the situation is pushing the global economy toward the IMF’s “adverse scenario,” where global growth could slow to 2.5 percent this year.
Additionally, the IMF said rising energy costs may increase inflationary pressures and tighten financial conditions worldwide.
The Fund also confirmed ongoing discussions with several member countries seeking economic assistance or policy advice to manage higher commodity and energy prices caused by regional instability.
