The head of the International Monetary Fund says economic growth has started slowing in Japan and the euro zone.
Christine Lagarde issued the comments in a statement on Wednesday. A Group of 20 meeting of finance ministers and central bank governors starts on Saturday in Argentina.
She says the current growth of the world economy appears to be peaking.
Lagarde revealed estimates of the negative impact of current trade frictions. She says global GDP will decline up to 0.5 percent due to higher tariffs, including future ones, by the US and other countries.
The IMF estimates that the US economy will shrink 0.8 percent as a result of retaliatory measures by other countries.
China and other emerging economies in Asia are to suffer a collective 0.7 percent drop.
Japan may see a decline of 0.6 percent. The country will be gravely affected by higher levies on automobiles the US is considering.
The euro zone economy could shrink 0.3 percent.
Lagarde says countries should work to develop trade rules on protecting intellectual property. She adds that the upcoming G20 meeting should be an opportunity to resolve the trade rows.
