Imf lowers global growth forecast for 2019

The International Monetary Fund (IMF) has lowered its global growth forecast for 2019, citing a range of factors including trade tensions, Brexit uncertainty, and a slowdown in emerging markets.

According to the IMF's latest World Economic Outlook (WEO) report, global growth is expected to slow to 3.3% in 2019, down from 3.6% in 2018. This represents a downward revision of 0.2 percentage points from the previous forecast.

The IMF attributed the downward revision to several factors, including:

  1. Trade tensions: The ongoing trade tensions between the United States and China, as well as other countries, have led to a decline in global trade and investment.
  2. Brexit uncertainty: The uncertainty surrounding the United Kingdom's departure from the European Union (Brexit) has created uncertainty for businesses and investors, leading to a slowdown in economic activity.
  3. Slowdown in emerging markets: Many emerging markets, including China, India, and Brazil, have experienced a slowdown in economic growth, which has contributed to the downward revision.
  4. Global financial conditions: Tighter financial conditions, including higher interest rates and a stronger US dollar, have made it more difficult for countries to finance their debt and have contributed to the slowdown.

The IMF also warned that the global economy is facing a range of risks, including:

  1. A sharp decline in global trade: A significant decline in global trade could lead to a recession.
  2. A financial crisis: A financial crisis could be triggered by a sharp decline in asset prices or a sudden stop in global credit.
  3. A rise in protectionism: A rise in protectionism could lead to a decline in global trade and investment.

The IMF recommended that policymakers take steps to address these risks, including:

  1. Implementing policies to support trade and investment, such as reducing tariffs and increasing investment in infrastructure.
  2. Implementing policies to support financial stability, such as increasing regulation and supervision of financial institutions.
  3. Implementing policies to support economic growth, such as increasing government spending and reducing taxes.

Overall, the IMF's downward revision of its global growth forecast highlights the challenges facing the global economy and the need for policymakers to take steps to address these challenges.