IMF cuts 2019 growth outlook again, with risks 'skewed to the downside'

© Yong hian Lim

Trade tensions have played their part in the IMF’s decision to reduce its global economic growth forecasts for 2019 yet again. This marks the second downgrade of the year, with the monetary fund having earlier predicted an increase of 3.5% over the 12 months of the year, it now expects a 3.3% hike. CNBC reports that that news follows on from US Congress’s failure to pass the US-Mexico-Canada Agreement, which was signed by the commander in chief and was set to supplant Nafta. No-deal Brexit, political uncertainty surrounding upcoming elections worldwide, and geopolitical tensions in Asia are all playing into the IMF’s growth fears. But, on the positive side, it is expecting 2020 to be up 3.6%.