US-China Trade War Will Shrink the World Economy By $700bn in 2020


The International Monetary Fund has estimated that the continuation of the trade war between the United States of America and China would wipe about $700 billion off the global economy by 2020. Already, information indicated that the technology industry has lost $10bn (€8.97bn) and could end up setting back the average US household $460 (€412.56) a year, according to an analysis by London-based economists Kirill Borusyak and Xavier Jaravel.
In China, the row has ensured economic slowdown. Despite the sluggishness in the economy, a new report by the Bank of China predicts that the economy will grow at 6.1 percent in 2020.  “The overall verdict is cautiously optimistic,” the BOC Research Institute said in the Report on Economic and Financial Outlook for 2020.
Infoprations has earlier examined the future of African economies amidst the predicted 2020 global recession expected to come into fruition due to the trade war between the two countries.  In the analysis, Infoprations notes that Africa needs to pursue open and predictable policies, and revive multilateral cooperation. Beyond these, Africa must embrace new technologies within the global value chain to create new products and increase productivity.

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