Lagarde, President of MF, predicts a series of positive and negative impacts on
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IMF, President of the International Monetary Fund (IMF), said on Thursday that she expects that the "complex" tax reform in the US will bring two positive and negative effects, including the acceleration of short-term growth that may lead to economic overheating and the problem of debt rising.
Lagarde said in a Reuters interview on Thursday that tax reform could bring about 1.2 percentage points of economic growth to the US in the past 2018-2020 years, which should help boost global economic growth and trade in at least a few years.
"To a certain extent, the growth rate of the US economy will increase, and because the US is a very open economy, which may bring us rising demand for other countries. This is also a positive impact," Lagarde said in a week's trip to Indonesia.
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