In its latest World Economic Outlook report Tuesday, the IMF cut its forecast for global growth in 2019 AND 2020, sending a warning that the U.S.-China tariff spat and Brexit could lead to a further slowdown, weakened investment and a disruption to global supply chains.
According to the IMF, downside risks have intensified and it now expects global growth to be 3.2 percent this year, and 3.5 percent next year, a decrease of zero.one percentage point for both years from its previous forecast in April.
The IMF's latest downgrade is the fourth cut since October.
The global lender says economic data so far this year and softening inflation, point to weaker-than-expected activity, with trade and technology tensions adding to the bleak forecast.
The IMF also slashed its forecast for global trade growth by zero.nine percentage point to two.five percent for this year, but said trade growth should rebound to three.seven percent in 2020, but that's still zero.two percentage point under its previous forecast.
However, the IMF paints a rosier picture for advanced economies, such as the United States.
The IMF raised its forecast for the U.S. to two.six percent in 2019, but left its 2020 forecast unchanged at one.nine percent.
The IMF also upgraded its growth forecast for the eurozone to one.six percent in 2020, leaving its 2019 outlook unchanged at one.three percent.
The IMF urged countries to work at the multilateral level to reduce trade tensions, also calling for efforts to ensure the continued enforcement of existing World Trade Organization rules.
Lee Seung-jae, Arirang News.