IMF Sees Global Growth Falling Amid Trade War

The video discusses global economic projections, highlighting a projected 3.9% growth in 2019, similar to 2018. It addresses risks from escalating trade tensions, particularly involving the US, and the potential for protectionism. The IMF's stance on multilateral trade systems is emphasized. Financial markets are described as complacent to global risks, with potential for abrupt asset repricing. The video also examines China's economic vulnerability to trade tensions, noting its dependency on exports and recent GDP figures.

What is one of the main risks to global growth mentioned in the first section?

• Decreasing oil prices

• Increased government spending

• Escalating trade tensions

• Rising inflation rates

What is the IMF's advice regarding the multilateral trade system?

• To abandon it in favor of bilateral agreements

• To improve and extend it to areas with less liberalization

• To focus solely on goods trade

• To increase tariffs to protect local industries

Why is the US considered to have a comparative advantage in services trade?

• Due to its high agricultural output

• Due to its large manufacturing sector

• Because of its advanced technology and innovation

• Because of its low labor costs

What could lead to an abrupt repricing of assets in financial markets?

• A slowdown in economic growth or unexpected interest rate hikes

• A sudden increase in oil prices

• An increase in government subsidies

• A decrease in global trade

How might China respond to trade tensions according to the third section?

• By focusing on agricultural exports

• By increasing its reliance on exports

• By reducing its domestic credit rate

• By using various economic levers to stabilize its economy