U.S., China tariffs could lower global GDP by 0.8% in 2020-IMF

Tariffs imposed by the United States and China could lower the level of global economic output by 0.8% in 2020 and trigger additional losses in future years, the International Monetary Fund said on Thursday.

IMF spokesman Gerry Rice said global trade tensions were beginning to weigh down dynamism in the global economy that is already facing difficult challenges, including a weakening of manufacturing activity not seen since the global financial crisis of 2007-2008.

Rice said a global recession was not in the fund's baseline. The global lender will release new economic forecasts next month, he said, adding, "Let's not get ahead of ourselves. Let's wait and see."