"The multilateral rules-based trade system that evolved after world war two and that nurtured unprecedented growth in the world economy needs strengthening".
Trump is pushing China to reduce its massive US$375bn trade surplus with the United States by US$100bn and change its policies that he says force American companies to hand over their technology and intellectual property to Chinese companies. "Instead, it is in danger of being torn apart".
In an apparent reference to the steps being taken by countries like the USA and China, Obstfeld said that major economies are flirting with trade war at a time of widespread economic expansion may seem paradoxical-especially when the expansion is so reliant on investment and trade.More news: OnePlus 5T gets iPhone X like gestures
"If policymakers are complacent and do not tackle the challenge of strengthening long-term growth, political risks could intensify, possibly reversing some of the progress that economic reforms and integration have achieved to date".
In its biannual World Economic Outlook, IMF kept its GDP growth forecast for India unchanged at 7.4% for 2018-19 and 7.9% for 2019-20, holding that economic activity will be lifted by strong private consumption as well as fading transitory effects of demonetisation of high-value currencies and implementation of the national goods and services tax (GST).
In Saudi Arabia, the biggest Arab economy which contracted 0.7 per cent a year ago, 2018 growth was revised up to 1.7 per cent, a 0.1 percentage point increase from the January projections.More news: Weather Forecast: More snow today, but warmer days are near
It now sees Australia growing at three per cent in 2018 compared to its previous 2.9 per cent prediction made in February, while keeping 2019 at 3.1 per cent.
In general, economy of the CIS member countries will grow 2.2 percent in 2018 and 2.1 percent in 2019, according to analysts of the fund. This is the highest share of countries experiencing a year-over-year growth pickup since 2010. Obstfeld said this forecast was a best-case assumption based on a Brexit deal that involved zero tariffs and favourable access to the European Union for the City.
Moldova's central bank, BNM, decided on March 1 to maintain its key rate at 6.5%, striving to keep inflation close to the target level.
The IMF urged countries to take advantage of the rise in economic growth levels in the near-term to enact policies and reforms which will strengthen "the potential for higher and more inclusive growth" and to build buffers ahead of the next downturn, including improving financial systems and increasing global cooperation.More news: Confirmed tornadoes from Sunday