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Global finance chiefs warn trade war is a drag on global growth
Global finance chiefs used the closing sessions of talks in the tropical resort of Bali to hammer home the message that simmering trade tensions are already denting global growth and need to be resolved. Bank of Japan governor Haruhiko Kuroda said it is essential to have dialogue on trade; Brazil’s central bank president Ilan Goldfajn flagged the tensions as one of the biggest threats to emerging economies; Bank for International Settlements GM Agustin Carstens said there is a risk that the global economy goes backwards due to rising protectionism. While People’s Bank of China governor Yi Gang called for a constructive solution to the dispute, he added that China is preparing for the worst. "You see a lot of people in China now preparing for this trade tension to be a prolonged situation," Yi said during a panel discussion hosted by the Group of Thirty, a consultative group on international economics. "The downside risks from trade tensions are significant." The Chinese official rec...
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