IMF lowers global growth forecast for 2019 to 3.5%, the slowest in 3 years

In the latest report on the world economic outlook, the International Monetary Fund (IMF) lowered its global growth forecast to 3.5% in 2019 as against 3.7% expected in October. 

The IM also expects Chinese economic slowdown to continue and now foresee 6.2% growth for this year and next, though warned that economic activity may fall short of expectations if trade tensions persist.

Additional highlights:

   •  Euro growth forecast cut to 1.6% from 1.9% projected in October.
   •  Maintains US growth forecast at 2.5% in 2019 and 1.8% in 2020.
   •  Further escalation of trade tensions remained a key source of risk to the outlook.
   •  The risk to global growth is now tilted to the downside.