Russian Deputy Finance Minister Sergei Storchak said the most painful scenario of the trade war will take place in case trade restrictions affect the service industry, RIA Novosti reported.
In this case, prohibitive measures will be introduced successively, which can go too far. Currently, only restrictions on selected goods are in effect, the deputy minister emphasized addressing a G20 meeting, which took place on the sidelines of the Annual Meetings of the International Monetary Fund and the World Bank Group in Bali.
Storchak urged the colleagues to stop the trade war as it “increases volatility.”
At the meeting, representatives of the G20 member states discussed trade wars’ impact on developing markets, including Russia. According to Storchak and his foreign colleagues, the economic growth rates can reduce, among others, due to more expensive loan capital and amidst local currencies falling against the US dollar.
Yet, the financial forecast for Russia sounds rather optimistic.
“Russia is about the only country whose economic growth outlook has been raised by the IMF. As regards other countries, it has either remained the same or decreased,” First Deputy Governor of the Bank of Russia Ksenia Yudaeva emphasized.