IMF warning: dangerous Trump recipe for world economy

The Donald Trump-style protectionism could hurt the global economy. This was stated by Director General of the IMF, Christine Lagarde, in an interview with the Financial Times yesterday, pointing out that protectionism is negative for growth, social inclusion and people.

Lagarde warns about the risk of a new pause in the march of globalization, a moment like the destruction caused from the beginning of the First World War.

"I hope this is not a time like 1914, and I hope that history has taught us that the negative impact of globalization should be managed to get the huge benefits that this implies": the "waves of protectionism" in the past "preceded many wars".

While not wishing to enter the US political debate, Lagarde has expressed its opposition to proposals for Trump, who wants to impose taxes 'punitive' on products imported from China and Mexico, and tear up the trade agreements like the North American Free Trade Agreement (Nafta) .

The International Monetary Fund also supports the Trans-Pacific Partnership (TPP), the agreement between the United States and 11 other Pacific countries, labeled as a "disaster" for the US economy from Trump.

"We must work with all governments and all authorities, but certainly we hope that, whatever the new government in the United States, and whoever is elected president – Lagarde said – look to trade in positive terms."