"China has strengthened its fiscal and monetary stimulus to counteract the negative impact of trade tariffs. Moreover, the outlook for US-China trade tensions has improved as the outlook for a trade agreement takes shape," Gita Gopinath, IMF's financial adviser , wrote in the report.
However, the fund downgraded China's economic growth by 2020 to 6.1 percent from its previous 6.2 percent forecast.
"While the overall outlook remains favorable, there are many downside risks, an unpleasant ceasefire in trade policy, as tensions can flare up and play out in other areas (such as the automotive industry) with major disruptions in global supply chains. China and the United States have been engaged in a trade war since last year, while the two largest economies in the world have been pushing for further trade while negotiating a trade agreement, and the US has renegotiated a trade agreement with its North American counterparts. neighbors Canada and Mexico and Asian ally South Korea Washington also tries to reassess its trade relations with the EU and Japan
The IMF has cut its global growth forecast three times since October, partly due to tensions between the US and its trading partners .