The International Monetary Fund (IMF) lowered its global growth forecast to 3.2 percent in 2019, according to a report released in Santiago on Tuesday (July 23).

In April, the agency forecast a 3.3-percent expansion in global gross domestic product (GDP), but slow growth in the first half of the year, trade and technology disputes, and uncertainty regarding Britain's withdrawal from the European Union led to the downward adjustment.

The IMF's most recent World Economic Outlook report also downgraded the forecast for 2020, from 3.6 percent to 3.5 percent.

A breakdown of countries showed growth results were positive for several developed economies, though weaker than expected for emerging markets and developing countries.

Emerging markets and developing countries are expected to see a 4.1-percent growth in 2019 and 4.7 percent in 2020, a 0.3-percent and 0.1-percent reduction, respectively, compared to April, IMF chief economist Gita Gopinath told reporters in Santiago, USA.

The downgrades were blamed on moderate investment and demand for goods, as households and businesses limit long-term spending, slowing capital flows, especially in the manufacturing sector.

The IMF called for strengthening fiscal policies to stabilize and spur economic recovery through structural reforms that guarantee sustained growth over the medium term.

The agency also urged greater multilateralism to strengthen the foundations for global growth.

To grow, the global economy needs less trade tensions and the rapid resolution of pending trade agreements, including between Britain and the European Union, as well as the ratification of the new North American

Free Trade Agreement by Canada and the United States. Mexico's legislature has already approved the deal.

Governments should not use tariffs as a way to balance their bilateral trade exchange, the agency said.

                                                      Source: NDO


Related Topics


World News in Brief: March 30

The Democratic People's Republic of Korea (DPRK) successfully test-fired super-large multiple rocket launchers on Sunday (March 29), the official Korean Central News Agency (KCNA) reported on Monday (March 30) morning. The report said the test was conducted by the Academy of Defence Science to verify the tactical and technological specifications of the launch system once again "to be delivered to units of the Korean People's Army."

Trump gives up quarantine on New York, CDC issues travel advisory over COVID-19

US President Donald Trump said Saturday (March 28) he asked the US Centers for Disease Control and Prevention (CDC) to issue travel advisory for the states of New York, New Jersey and Connecticut, scaling back from an earlier suggestion to impose quarantine on those areas.

Vietnam asks China to respect its sovereignty

Vietnam requests China to respect its sovereignty and take no actions that escalate tensions and complicate the situation, affecting peace and stability in the East Sea and the region, as well as efforts of countries in negotiations of a Code of Conduct in the East Sea (COC), spokesperson of the Vietnamese Ministry of Foreign Affairs Le Thi Thu Hang said.

Eurozone struggles to properly respond to “economic shock” amid COVID-19 fears

A recent comment by Dutch Finance Minister Wopke Hoekstra - "We are driving through the mist and we don’t know what the next phase looks like” - might cause confusion but it accurately reflects the reality of economies in the Eurozone. Recognising the imminent risk, the only monetary union in the world has yet to agree on measures to respond to the "economic shock” caused by the COVID-19 epidemic.

World News in Brief: March 25

UN Secretary-General Antonio Guterres has asked leaders of the Group of 20 (G20) to help launch a stimulus package in the trillions of dollars to keep businesses, workers and households afloat in face of the coronavirus. By the end of this year, the cost of this pandemic is likely to be measured in the trillions of dollars, Guterres told G20 leaders in a letter dated March 23.

European nations strive to combat COVID-19 with raft of further measures as Merkel put in quarantine

With surging confirmed COVID-19 cases, European nations adopted a raft of further measures on Sunday (March 22) to peg back the contagion, as German Chancellor Angela Merkel has put herself in quarantine after a doctor she met Friday tested positive.