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BOJ chief: Trade is the biggest risk to the global economy
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Loading...Increasing trade protectionism around the globe is the biggest threat to global economic growth, Bank of Japan Governor Haruhiko Kuroda says.
“There [is] some sort of protectionism” around global trade, Kuroda told CNBC’s Sara Eisen in an interview that aired Monday. “That is I think most serious risk involved in the global economy.”
Kuroda’s comments come as China and the U.S. try to strike a trade deal that would end an ongoing tariff war. The two sides appear to be closing in on a deal.
Investors have been fretting over the possibility of a protracted trade war as it could hinder future corporate profits. The International Monetary Fund also cut its economic growth forecast for 2019 to 3.3% from 3.5%, with trade among the risks cited.
“By the way, [the] IMF world economic outlook main scenario does assume the U.S.-China trade conflict will not worsen,” Kuroda said. If it worsens, it could lead to a different outlook for the global economy.
Still, Kuroda said the Chinese economy is “likely to recover in the second half” of 2019, highlighting the “huge fiscal stimulus measures the government has already decided.”
But Kuroda said there may be more room for central-bank easing, although he added that looser policy is note needed right now.
Source: CNBC
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