The new head of the International Monetary Fund (IMF) applauded the phase one trade deal between China and the U.S. as a “very positive step” for both countries and the world economy, and called for continuous discussions on broader policy topics.

In an exclusive interview with Caixin in Washington Monday, IMF Managing Director Kristalina Georgieva said she expects the agreement between the two countries to boost China’s growth to around 6% next year, up from the IMF’s previous estimate of 5.8% made in October.

The earlier forecast was made before the U.S. and China agreed on the phase one deal on Friday which effectively pauses their 18-month trade war, rolls back certain tariffs, increases imports of some American agricultural products, and contains a commitment to structural reforms and other changes to China’s economic and trade system.

But Georgieva also warned that this is just a trade truce. “To sustain the positive impact for the world, we need to go from trade truce to trade peace,” she said.

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Contact reporter Denise Jia (huijuanjia@caixin.com)

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