The IMF has officially cut its outlook for global growth to the lowest since the financial crisis amid a worsening outlook in most major advanced economies.
In its latest World Economic Outlook, the IMF forecasts that the world economy will grow 3.3% this year, down from the 3.5% the IMF had forecast for 2019 in January:
This is the third time the IMF has downgraded its outlook in six months.
IMF says risks are skewed to the downside, citing trade tensions, softness in Europe and fears of a no-deal Brexit and, as such, has:
- lowered 2019 U.S. growth estimate to 2.3% vs 2.5% estimate in January
- cut euro-area growth forecast to 1.3% this year from 1.6%
- raised China 2019 economic growth forecast by 0.1 percentage point to 6.3%
- lowered 2019 trade volume growth est. to 3.4% vs 4% in January
Every single country’s growth outlook was cut… except Nigeria!
Of course, it would not be a globalist report without some hope and the IMF suggests global economic growth will recover in the second half of this year, before plateauing at 3.6% from next year…
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