The IMF said the global economy will expand 3.7% this year, down from its April estimate of 3.9%. The organization said that the current trade rhetoric coupled with the disruption of capital flows to the emerging markets will curtail growth.
In recent months, the United States and China have engaged in a prolonged trade war with retaliatory tariffs. Recent reports suggest that Chinese companies have found thousands of loopholes allowing them to evade such tariffs.
