The International Monetary Fund (IMF) welcomed the initial positive dialogue between U.S. President Donald Trump and Chinese President Xi Jinping, saying it reduces tensions and benefits the world economy.
IMF spokesperson Julie Kozack said that engagement at the highest level between the world's two largest economies is crucial. 'Anything that helps reduce trade tensions and uncertainty is good for both economies and the global economy,' she added.
The IMF has long urged both countries to resolve trade differences through dialogue rather than unilateral measures. After a year of steep tariffs and retaliation, the leaders' discussions on trade and investment were more positive.
Trump stated that China agreed to order 200 Boeing jetliners, and deals for U.S. energy and farm goods were also discussed. The creation of bilateral trade and investment bodies for non-strategic sectors is also planned.
Due to the Middle East war and Iran's closure of the Strait of Hormuz, the global economy is moving toward the IMF's 'adverse scenario' with oil above $100 per barrel. Global real GDP growth is projected to fall to 2.5% this year.
IMF Managing Director Kristalina Georgieva will discuss economic issues with G7 finance ministers and central bank governors. The IMF is also discussing financial assistance for member countries struggling with higher energy costs.
