IMF warns of the impact of the commercial war on the economy

He International Monetary Fund (IMF) warned that Commercial War It will have a negative impact on world economic activity, so now it estimates a global growth of 2.8%, compared to the growth of 3.3% estimated in January.

Minister of Transport and Communications announced that they are doing comprehensive tests.

“The United States has announced and implemented a series of new tariff measures, and its commercial partners a series of countermeasures, which culminated on April 2 with the imposition by the United States of practically universal tariffs, which has led to effective tariff rates at levels not seen in a century. This, by itself, is an important negative shock for growth,” said the IMF.

In that sense, he pointed out that these types of measures diffuse more than usual that assumptions may be raised that constitute the basis for making a set of appropriate projections and with internal coherence.

He also indicated that tariffs constitute a negative shock for the offer of the economy that imposes them, since resources are reallocated to the production of non -competitive goods, “with the consequent loss of added productivity, lower activity and production costs and higher prices.”

“In the medium term, by reducing competition, tariffs increase the market power of internal producers, weakens incentives for innovation and create multiple opportunities for the search for oligopolic income,” he said.

In the same way, he explained that the impact on the commercial partners of the countries that impose these tariffs, is that foreign clients from some products that market, even when those economic could benefit from the redirection of commercial flows.

“The uncertainty about commercial policy is another important factor that overshadows the prospects. Given the growing uncertainty about access to markets – their own, but also those of its suppliers and customers – the initial reaction of many companies will be pause, reduce investment and cut purchases,” he said.

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