“IMF Cuts 2025 US and China Growth Forecasts; Trump Flip-Flops on Trade War Rhetoric.”, – WRITE: www.fxempire.com
IMF Chief Economist Pierre-Olivier Gourinchas Stated that Growth Prospects Could Improve Rapidly if Tensions Easions and New Agreements Were Reached. He Emphasized the Importance of Addressing Internal Imbalances and Increasing Domestic Demand in China to Support Global Output.
Retail Sector Warnings and Recession Fears Promplept Policy Shift The IMF ALSO RAISED ITS ESTIMATE OF A 2025 US RECESSION TO 40%, up from 27% in October. However, IT Noted that Beijing’s Fiscal Stimulus Was Helping Counter the NEGATIVE IMPACT OF TRADE TENSIONS ON China’s Economy.
Earlier this Week, Trump Met with the Ceos from Home Depot, Lowe’s, Target, and Walmart. The CEOS Warned Trump of Empty Shelves Looming in the MONHS AHEAD. With Private Consumption Accounting for Over 60% of US GDP, Empty Sheelves Could Hit The US Economy Hard. Supple-Demand Imbalances May Also Push Inflation Above the IMF’s Latest 3% Forecast.
In Political Circles, Trump’s Soften Stance Is Also Seen As An Effort to Shield USA Farmers – A Core Segment of His Base. Fox Business Senior Correspondent Charles Gasparino Noted that Tariffs Were Hurting Agricultural Exports to China, Undermining Trump’s Support in Rural America. However, Sources Indicated that A Deal Remains Distant and that Chinese Willingness to Compromise Is Still Uncertain.
Economists Argue that China’s entrenrenched role in Global Supple Supple CHAINS PETENTILLY LIMITS WASHINGTON’S LEVERAGE. Natixis Asia Pacific Chief Economist Alicia Garcia Commented: