Global Economic Growth Expected to Slow Amidst Trade War: Sri Mulyani
Minister of Finance Sri Mulyani Indrawati, accompanied by Minister of Foreign Affairs Retno Marsudi, delivers a press conference in Osaka, Japan, Friday (28/6). Photo by: ANGGUN/PR.
Global economic growth is expected to be slower this year due to escalation of US-China trade war and the rise of global protectionism, according to Indonesian Minister of Finance Sri Mulyani Indrawati.
“Christine Lagarde (Managing Director of the International Monetary Fund) has said that the trade war will cause the world economic growth to decline by 0.5%,” Sri Mulyani told the reporters in Osaka, Japan, Friday (28/6).
The Minister added that world economic growth – which stands at 3.5% this year- will reach 3.1% next year if the trade war continues. She also cited President Trump who expressed his concerns on fair trade issues, reciprocity, level playing field, and unfair policies.
“This illustrates that in President Trump’s framework, there are some practices in several countries that are considered detrimental to the United States,” she said.
On the other hand, the Minister continued, Chinas President Xi Jinping has said that the desire to create a win-win solution depends on commitment and efforts from all relevant parties.
Sri Mulyani went on to say that many global leaders have hoped for reforms in the World Trade Organization, particularly on dispute settlement mechanism, multilateral policy, and on resolving differences in accordance with fair trade practices.
“I think the most important thing in investment and trade issues are economic policies of the G-20 countries that can affect the global economy,” the Minister said, adding that almost all parties agree that reform and efforts are needed to eliminate or reduce international trade tensions.
Sri Mulyani further said that the G-20 leaders have not reached an agreement on how to do the reforms, adding that the G20 Communiqué is expected to solve the differences and all parties will pay attention to a meeting between President Trump and President Xi Jinping to be held on Saturday (29/6).
“China said that a win-win solution can be achieved as long as both parties have good intentions to get the solution, while President Trump said that there are several actions that must be corrected,” Sri explained. (EN/GUN/ES)
Translated by: Ridwan Ibadurrohman
Edited by: Ersan Pamungkas
