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IMF: Global Economy at a “Delicate Moment”
The world’s economy, which expanded by 3.6% last year, will grow 3.3% this year—down from an earlier forecast of 3.5%, the International Monetary Fund predicts.
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The world’s economy, which expanded by 3.6% last year, will grow 3.3% this year—down from an earlier forecast of 3.5%, the International Monetary Fund predicts.
But Chief Economist Gita Gopinath describes the recovery as “precarious.” She says much depends upon gains among emerging and developing economies that offset slower growth ahead for mature economies such as the U.S. and Europe.
The IMF expects China’s economic growth will slow from 6.6% last year to 6.3% in 2019 and 6.1% in 2020.
Gopinath says a plethora of downside risks leaves the global economy at a “delicate moment.” She cautions that accelerated growth could be thwarted by worsening trade tensions, especially if the U.S. slaps new tariffs on cars shipped from Europe to the U.S.
Other risk factors are the possibility of weakened financial markets, the aftermath of the U.K.’s exit from the European Union and the likelihood of slower growth in the U.S. as the effects of Trump’s tax cuts dissipate.
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