IMF cuts global growth forecasts amid trade war

(VOVWORLD) - The International Monetary Fund has cut its global growth forecasts as trade tensions between the US and trading partners have started to hit economic activity worldwide.

The IMF said the global economy is now expected to grow at 3.7% this year and next year — down 0.2% points from an earlier forecast, according to the fund's latest World Economic Outlook report released on Tuesday.

The IMF maintained that the US and China will grow by 2.9% and 6.6%, respectively, this year but said both would slow more than expected to 2.5% and 6.6%, respectively, in 2019.

Trade tensions also influence Indonesia, Malaysia, the Philippines, Thailand, and Vietnam which could keep their growth at 5.3% this year and reduce 0.1% next year.

The IMF downgraded its growth estimate for the eurozone as trade tremors and Brexit fears took an unexpected toll on the economy in Europe. The fund predicted growth of 2 % this year and 1.9% in 2019

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