IMF backs US-China talks, studies Iran move

Washington, Sep 11 (SocialNews.XYZ) The International Monetary Fund has welcomed talks between the leaders of the United States and China, saying engagement between the world’s two largest economies would benefit global economic stability.

The Fund separately said it was studying new US sanctions targeting Iran’s trading partners amid the continuing Middle East war.

The IMF remarks came ahead of an expected meeting between the US and Chinese presidents later this month.

“We think it's very important that the leaders of the two largest economies are meeting, engaging, and, you know, having discussions on ways to resolve any of their tensions or conflicts,” IMF Communications Director Julie Kozack told reporters here.

Trade and economic tensions between Washington and Beijing can have consequences extending far beyond the two countries because of their central roles in global commerce, manufacturing and financial markets.

“Obviously, having the U.S. and China in discussions and finding ways to navigate any of the tensions they have is good for the U.S.; it's good for China, and that means it's good for the global economy,” Kozack said.

The IMF did not identify specific outcomes it expected from the potential meeting.

Addressing a separate question on Iran, Kozack said the Fund was examining the United States’ launch of Operation Economic Outcast. The initiative involves secondary sanctions directed at Iran’s trading partners.

“On the question on the new sanctions on Iran, this is obvious, is something that we're looking at closely,” she said.

The IMF said it was still studying the details and described the action taken so far as relatively limited.

“We're still kind of looking at the details right now,” Kozack said. “As you said, the action is relatively limited.”

The Fund plans to provide a broader assessment through its forthcoming World Economic Outlook and its regional discussions on the Middle East.

“So we're paying close attention, and we'll have a fuller report on that in both our World Economic Outlook but also in the regional discussion around the Middle East,” Kozack said.

The IMF said the global economy had remained resilient despite six months of war in the Middle East. It expects world growth of about 3 per cent but says uncertainty remains high.

The conflict has contributed to elevated oil, gas and refined fuel prices. The IMF said ship traffic through the Strait of Hormuz was only one-tenth of pre-war levels, while higher borrowing costs and commodity prices were adding to risks confronting the global economy.

Source: IANS