In its latest World Economic Outlook Update, the International Monetary Fund announced that it has lowered its forecast, for the fourth consecutive time since the last October, for global growth in 2019 by 0.1% to 3.2% and by 0.1% next year to 3.5%, per Reuters.
Below are some key takeaways from the IMF’s press release.
“Downside risks have intensified since April forecast, including escalating trade and tech tensions.”
“More US-China tariffs, car tariffs or no-deal Brexit could further weaken investment, disrupt supply chains and severely slow growth.”
“Raises growth forecast for US to 2.6% in 2019; leaves 2020 forecast unchanged at 1.9%.”
“Raises growth forecast for the euro area to 1.6% in 2020, leaves 2019 growth outlook unchanged at 1.3%.”
“Cuts growth forecast for emerging markets/developing economies to 4.1% in 2019, 4.7% in 2020.”
“Cuts forecast for growth in global trade volume by 0.9% to 2.5% in 2019; lowers 2020 forecast 0.2% to 3.7%.”
“Projected pickup in 2020 trade growth presumes stabilization in emerging markets, progress on trade disputes.”
“Slower global growth, drop in core inflation have revived risk of disinflation.”
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