IMF warns US of growing trade risks

WASHINGTON, The US economy is expanding faster than any other advanced nation, and in weeks will hit a historic milestone, but the International Monetary Fund is warning of building signs of trouble.

In its annual review of the US economy, the IMF warned that “material risks” overshadow the outlook, including trade uncertainty, rising debt levels and growing inequality.

“It is especially important that the trade tensions between the US and China — which represent a threat to the global outlook and create important negative spillovers to other countries — are quickly resolved,” the report said.

For now, US data is showing little impact on the overall economy but global financial markets have been shaken by the trade conflict and the US Federal Reserve this week opened the door to cutting interest rates to salvage growth.

The IMF upgraded its forecast for US growth this year to 2.6 percent, three tenths higher than it predicted in April, while growth in 2020 is seen slowing to just under two percent.

Source: Emirates News Agency