IMF’s Berger: China’s technology decoupling would slash global GDP
China’s technological decoupling with the US and Europe could hit the global GDP harder than seen in the recent trade war, Helge Berger, head of the International Monetary Fund (IMF) China mission said in an interview with Bloomberg Television Friday.
Key quotes
“The world is such an integrated place.”
“If you stop exchanging knowledge across countries or borders you will ultimately pay a price, and this could be fairly high.”
“The tensions around the US-China relationship are one of the risk factors that we look at. This is a constant concern.”
“Tariffs between the two countries subtracted from growth last year and will do so again this year, estimating the global impact at about 0.4% of GDP.”
“But things could become more difficult if we allow technological decoupling to take place between the US and China, between other countries like Europe.”
“So, it is important that these two large, very important economies that are such a large part of where the global economy goes find a way to work together.”
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