IMF chief Christine Lagarde
today cautioned against any measure that may stifle international trade, saying any such step would undermine the recovery in global economic growth.
Speaking at a session on remaking of global finance
here at the World Economic Forum
said, "We are certainly seeing two clear engines of growth. One is investment which is growing pretty well and the other is international trade that is growing even faster than the global economic growth."
She said there is a need to fire on all cylinders for sustained growth and trade is a very important part of that and any measure that seeks to restrict trade will hurt growth in a big way.
Asked whether she was being diplomatic by not directly mentioning the steps underway in the US, Lagarde
said, "Who will agree with measures that impacts trade adversely? Opening barriers under a rules-based system is what is always a welcome step."
US Treasury Secretary Steven Mnuchin
said the foremost economic agenda of President Donald Trump
has been to ensure sustained economic growth and one can see the positive reaction from the stock markets.
"Our objective is to ensure wage growth and that is a big focus of what we are doing," he said. Besides, the US is getting a great response from international companies and everyone knows the country is open for doing business and we could not be more pleased with this, he added.
He also brushed aside any suggestion that the US is in a so-called race to the bottom on tax rates.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)