• About Us
  • Who Are We
  • Work With Us
Thursday, March 23, 2023
No Result
View All Result
NEWSLETTER
The Globe Post
39 °f
New York
44 ° Fri
46 ° Sat
40 ° Sun
41 ° Mon
No Result
View All Result
The Globe Post
No Result
View All Result
Home Business

IMF Cuts Global Growth Estimate, Warns of Risks for Recovery

Austin Klawitter by Austin Klawitter
04/09/19
in Business, World
Christine Lagarde

IMF chief Christine Lagarde. Photo: Cristobal Bouroncle, AFP

14
SHARES
Share on FacebookShare on Twitter

The International Monetary Fund provided a grim outlook for the global economy on Tuesday, downgrading global growth to 3.3 percent for 2019, the lowest since the financial crisis in 2009.

The IMF World Economic Outlook report “projects a slowdown in growth in 2019 for 70 percent of the world economy,” IMF chief economist Gita Gopinath said in a statement. However, “global recession is not in the baseline.”

The forecast is set to remain rather steady overall, with the economic growth projection for next year set to moderate. The projection is down from the 3.5 percent prediction provided by the IMF in January, and from the 3.9 percent anticipated a year ago. In 2020, global growth is projected to pick back up to 3.6 percent, given risk factors remain minimal.

With the global expansion losing steam, what should countries do? – IMF's Gopinath at the release of the April 2019 World Economic Outlook. #WEO https://t.co/c3e88wqrRA pic.twitter.com/Hi26vshACx

— IMF (@IMFNews) April 9, 2019

The latest’s projection is the third time the IMF has downgraded its outlook in six months. Reflecting on the latter half of 2018, the decline in economic growth can be attributed to a number of global issues that are continuing to weigh on financial stability, such as risk associated with developing economic situations, including Brexit, trade tensions and the crisis in Venezuela.

Trade tensions attributed to high tariffs have instigated a lack of business confidence, worsening financial market sentiment, the IMF reported. Stress on emerging economies developed into a tightening for financial conditions in advanced economies as well, weighing on overall global demand.

The view of the IMF is that conditions have eased somewhat in 2019, with the U.S. Federal Reserve taking a policy direction which aims to provide a more accommodative monetary stance and a tightening on monetary policy. Global markets have also grown optimistic about a U.S.-China trade deal.

Growth in advanced economies will slow slightly in 2020, despite a partial recovery in the euro area, as the impact of US fiscal stimulus fades and growth rates approach the modest potential for the group. #WEO https://t.co/IBo3jmG6z3 pic.twitter.com/SUJnza1MtF

— IMF (@IMFNews) April 9, 2019

Brexit has weighed on investment and lowered global economic outlook on the U.K., but when asked to elaborate on projections regarding Brexit, IMF panelists were hesitant to provide projections and could speak only to waiting and hoping for a deal in the near future.

A similar stance was said for the Venezuela crisis, which has adverse effects on the economy in Latin America due to its scope and the role oil plays in the Venezuelan economy. There are few projections for Venezuela other than a certainty that economic strife is carrying over into 2019.

The latter situations and uncertainty regarding trade, particularly between China and the United States, put developing and emerging economies at risk for recovery in 2020, according to Gopinath.

IMF Warns of Global Economic ‘Storm’ as Growth Undershoots

Share14Tweet
Austin Klawitter

Austin Klawitter

Related Posts

Argentina's President Alberto Fernandez
Opinion

Argentina and the IMF: Who Is at Whose Mercy?

by Robert Haywood Scott and Kenneth Mitchell
February 19, 2020
An angry crowd of Haitians confront a group of Brazilian UN peacekeepers
Opinion

Haiti’s Political Disaster: An Internationally Sponsored Crisis

by Vincent Joos
December 23, 2019
President of Argentina Mauricio Macri
Featured

Argentina’s Macri Ousted Amid Recession, Rising Poverty

by Staff Writer
October 28, 2019
Ecuador Indigenous Group Rejects Talks, Seeks to ‘Radicalize’ Protests
Featured

Ecuador Counts Cost of Deadly Protests After Deal

by Staff Writer
October 15, 2019
Ecuador Indigenous Group Rejects Talks, Seeks to ‘Radicalize’ Protests
Featured

Ecuador Indigenous Group Rejects Talks, Seeks to ‘Radicalize’ Protests

by Staff Writer
October 11, 2019
A demonstrator clashes with riot police during a strike against the economic policies of Ecuadoran President Lenin Moreno Photo: AFP
Featured

Ecuadoran President Vacates Capital Amid Demonstrations Against Austerity Program

by Staff Writer
October 8, 2019
Next Post
US President Donald Trump inspecting border wall prototypes in San Diego.

US Judge Blocks Trump's 'Remain in Mexico' Asylum Policy

Prime Minister Benjamin Netanyahu attends the weekly cabinet meeting in Jerusalem on November 19, 2017

Netanyahu, Gantz Both Declare Victory After Israeli Election

Recommended

Transgender Army veteran Tanya Walker speaks to protesters in Times Square near a military recruitment centre

Tennessee Is A Drag on the First Amendment

March 21, 2023
participants of an artificial intelligence conference

How AI Could Upend the World Even More Than Electricity or the Internet

March 19, 2023
Chinese President Xi Jinping

China’s Path to Economic Dominance

March 15, 2023
Heavily armed police inspect the area near a Jehovah's Witness church where several people have been killed in a shooting in Hamburg, northern Germany

Eight Dead in Shooting at Jehovah’s Witness Hall in Germany

March 10, 2023
Myanmar Rohingya refugees look on in a refugee camp in Teknaf, in Bangladesh's Cox's Bazar, on November 26, 2016

US Announces $26M in New Aid for Rohingya

March 8, 2023
A flooded road in Batu Berendam in Malaysia's southern coastal state of Malacca

At Least Four Dead, Tens of Thousands Evacuated in Malaysia Floods

March 6, 2023

Opinion

Transgender Army veteran Tanya Walker speaks to protesters in Times Square near a military recruitment centre

Tennessee Is A Drag on the First Amendment

March 21, 2023
Chinese President Xi Jinping

China’s Path to Economic Dominance

March 15, 2023
An earthquake survivor reacts as rescuers look for victims and other survivors in Hatay, a Turkish province where hundreds of buildings were destroyed by the earthquake

Heed the Call of Our Broken World

March 1, 2023
Top view of the US House of Representatives

‘Cringy Awards:’ Who Is the Most Embarrassing US House Representative?

February 13, 2023
Protesters rally against the fatal police assault of Tyre Nichols, outside of the Coleman A. Young Municipal Center in Detroit, Michigan, on January 27, 2023

How Do Violent ‘Monsters’ Take Root?

February 3, 2023
George Santos from the 3rd Congressional district of New York

George Santos for Speaker!

January 16, 2023
Facebook Twitter

Newsletter

Do you like our reporting?
SUBSCRIBE

About Us

The Globe Post

The Globe Post is part of Globe Post Media, a U.S. digital news organization that is publishing the world's best targeted news sites.

submit oped

© 2018 The Globe Post

No Result
View All Result
  • National
  • World
  • Business
  • Interviews
  • Lifestyle
  • Democracy at Risk
    • Media Freedom
  • Opinion
    • Editorials
    • Columns
    • Book Reviews
    • Stage
  • Submit Op-ed

© 2018 The Globe Post