IMF cuts 2019 global growth forecast to 3.0% from 3.2% in July, slowest pace since 2008-09 crisis

In its latest forecasts, the International Monetary Fund (IMF) announced that it lowered the 2019 global growth forecast to 3% from 3.2% in July and that reading marked the lowest growth estimate since the 2008-09 global financial crisis.

The market sentiment seems to be largely unaffected by the IMF’s remarks. As of writing, the 10-year United States (US) Treasury bond yield was down 1.4% on the day at 1.707%. Below are some additional takeaways from the IMF’s publication, per Reuters.

“Cuts 2020 global growth forecast to 3.4% from 3.5%; global outlook remains precarious.”

“Cuts 2019 US  growth forecast 2.4% from 2.6% in July; cuts 2020 US  growth forecast to 2.1% from 2.3%.”

“Cuts 2019 China growth forecast to 6.1% from 6.2% in July; cuts 2020 China growth forecast to 5.8% from 6.0%.”

“US-China trade tensions will cumulatively reduce global gross domestic product (GDP) output by 0.8% by 2020.”

“Trade war could cause China’s GDP  output to fall 2.0% in the short term, 1.0% in the long term, US output to fall 0.6% in both short and long term.”

“Risks skewed to downside due to uncertainty over trade tensions, Brexit, declines in risk appetite, manufacturing weakness.”