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IMF lowers global growth forecast for 2019, warns downside risks

Xinhua | Updated: 2019-04-09 21:15
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International Monetary Fund (IMF) Managing Director Christine Lagarde delivers a speech at the US Chamber of Commerce in Washington, US, April 2, 2019. [Photo/VCG]

WASHINGTON -- The International Monetary Fund (IMF) on Tuesday lowered its global growth forecast for 2019 to 3.3 percent in the newly-released World Economic Outlook (WEO) report, down 0.2 percentage point from its estimation in January.

The IMF said the world economy faces downside risks brought by potential uncertainties in the ongoing global trade tensions, as well as other country- and sector-specific factors.

The 3.3 percent projection for 2019 is 0.3 percentage point below the 2018 figure, followed by an expected return to 3.6 percent in 2020.

IMF chief economist Gita Gopinath wrote in a blog post that the projected slowdown in 2019 is "broad-based."

"It reflects negative revisions for several major economies including the euro area, Latin America, the United States, the United Kingdom, Canada, and Australia," Gopinath said.

With respect to the perceived recovery in 2020, the economist said it is "precarious," adding that it is based on the assumption that "a rebound occurs in emerging market and developing economies."

Beyond 2020, the just-released WEO predicted that global growth will "plateau at about 3.6 percent over the medium term."

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