IMF cuts global growth outlook, citing trade war and weak Europe
The fund has warned that further tensions between countries could destabilise the system
The IMF has cut its world economic growth forecasts for 2019 and 2020, due to weakness in Europe and some emerging markets. It says failure to resolve trade tension could further destabilise a slowing global economy. In its second downgrade in three months, the global lender on Monday also cited a bigger-than-expected slowdown in China’s economy and a possible “no-deal” Brexit as risks to its outlook, saying these could worsen market turbulence in financial markets. The IMF predicted the global economy would grow at 3.5% in 2019 and 3.6% in 2020, down 0.2 and 0.1 percentage point respectively from October 2018’s forecasts. The new forecasts, released ahead of this week’s gathering of world leaders and business executives in the Swiss ski resort of Davos, show that policymakers may need to come up with plans to deal with an end to years of solid global growth. “Risks to global growth tilt to the downside. An escalation of trade tensions beyond those already incorporated in the foreca...
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