If the trade war between the US and China continues, global GDP could shrink by 7%. writes about this Berliner Zeitung According to data from the International Monetary Fund (IMF).
According to fund analysts, more than 3 thousand new trade restrictions may emerge in the coming years in the environment of conflict between the world’s two largest economies. In addition, many countries are already abandoning the US dollar as a reliable reserve asset and increasingly prefer to invest in gold.
According to the IMF, in the first quarter of 2024, central banks around the world purchased 290 tons of gold, a record since 2016. This is because the precious metal is now considered a safe asset that is practically not subject to the risk of sanctions and seizures.
In particular, it increased the share of gold in the reserves of the “China bloc” countries from 2 percent in 2015 to 4.3 percent in 2023. At the same time, the share of the yellow metal in the “American bloc” remained the same.
At the same time, China is actively selling US government bonds; Its share of Chinese reserves fell from 44% to 30%.
The IMF believes that the current global financial system based on the US dollar is overloaded. Developing countries suffer the most from the strong US currency.
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