Global growth forecast cut by IMF amid trade tensions

# 14:45
24 July 2019

The International Monetary Fund (IMF) has cut its growth forecasts for the global economy for this year and next, APA reports citing BBC News.

It predicts growth of 3.2% in 2019, down from its April forecast of 3.3%. Growth next year is set to pick up to 3.5% next year, although that is below its earlier forecast of 3.6%.

Growth "remains subdued", the IMF says, and there is an urgent need to reduce trade and technology tensions.

The IMF named a no-deal Brexit as one of the key risks to global economic growth.

"The principal risk factor to the global economy is that adverse developments - including further US-China tariffs, US auto tariffs, or a no-deal Brexit - sap confidence, weaken investment, dislocate global supply chains, and severely slow global growth below the baseline," the Fund said.