IMF Sees Weakest Global Growth in Three Years as Europe Slows

Source: Bloomberg

The International Monetary Fund cut its forecast for the world economy, predicting it will grow at the weakest pace in three years in 2019 and warning fresh trade tensions would spell further trouble.

In its second downgrade in three months, the lender blamed softening demand across Europe and recent palpitations in financial markets. It predicts global growth of 3.5 percent this year, beneath the 3.7 percent expected in October and the rate in 2018.

The outlook is perhaps more upbeat than that of many investors who openly fear a U.S-led slowdown taking hold. The fund left its projections for the U.S. and China unchanged and even anticipates a pickup in worldwide expansion to 3.6 percent next year.



Read more: https://www.bloomberg.com/news/articles/2019-01-21/imf-sees-weakest-global-growth-in-three-years-as-europe-slows