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The International Monetary Fund (IMF) has cut its outlook for China, courtesy of escalating trade tensions.

The world’s second-largest economy is China is projected to grow 6.2 percent next year, down 0.2 points from the previous forecast.

Meanwhile, the fund has retained its growth projections for India in 2018 but marginally reduced it for 2019.

Key points (Source: Bloomberg)

  • The fund has downgraded the world outlook for the first time since July 2016
  • The fund downgraded its forecast for U.S. growth next year to 2.5 percent, down 0.2 percentage point from July.
  • India’s growth is expected to increase to 7.3% in 2018 and 7.4% in 2019.
  • The euro area will expand 2 percent this year, down 0.2 points from July.
  • The fund upgraded its forecast for Japan slightly to 1.1 percent growth this year, up 0.1 points from July.