IMF sees more tortoise, less hare ahead; lowers global growth outlook for third time in its World Economic Outlook
Apr 09, 2019
- In a feat of economic buzzkill, the IMF released its World Economic Outlook report, cutting its global growth outlook for 2019 to 3.3% from 3.5%
- This lowered outlook is its third cut over the last 6 months; it cut the outlook in January and October
- The IMF described a global environment of "trade tensions and tariff hikes between the US and China, a decline in business confidence, a tightening of financial conditions and higher policy uncertainty." No fun.
- A key aspect of the report is the continued weakening of global trade heading into 2019
- After growing 5% in 2017 amid strong global economic growth, growth in trade slowed to 3.8% in 2018 and is projected to slow to 3.4% in 2019 amid the trade tensions mentioned above
- 70% of the world had its growth outlook lowered in the report with the world economy being described as being "in a delicate moment"
- The US growth is expected to slow to 2.3% in the report; for sake of comparison the US Fed cut its growth expectation to 2.1% from 2.5%
For the full report click here