WASHINGTON DC, United States -The World Bank has warned that the trade war between the U.S. and China, which have the World's largest economies, could do more harm to the global economy and make the world poorer.
The bank gave this warning on Tuesday when making its semi-annual Global Economic Prospects report.
According to the report, a slowdown in the global economy is already being experienced as corporate and government debt rises particularly in the poorer countries.
According to Kose, the head of the World Bank Development Prospects Group which produces the global economic forecasts twice a year, the stabilization and destabilization of global growth will depend on how policymakers are going to react. Kose said that trade wars have dire consequences and are already affecting economies around the world.
Brewing of the trade storm between the two countries is expected to slow down the growth of the World economy to 2.9% in 2019, and 2.8% in 2020.
The economic growth of the U.S is expected to slow to 2.5% from 2.9% this year, and fall even further to 1.7% the following year. The trade dispute has also had an effect on China's economic growth, slowing it to 6.2% this year and in 2020.