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).
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
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.
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."
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 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.
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.
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.
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.