IMF downgrades global economic growth forecasts for 2019

The seal of the International Monetary Fund is seen outside of the headquarters building in Washington

The seal of the International Monetary Fund is seen outside of the headquarters building in Washington

Because of recent developments in the U.S.

The post-2020 growth stabilization, Gopinath said, is "bolstered mainly by growth in China and India and their increasing weights in world income".

'This is a delicate moment for the global economy, ' Gita Gopinath, the IMF's chief economist, said at a news conference, while cautioning that the fund does not foresee an worldwide recession.

Gopinath told a news conference Tuesday that monetary policy space varies across different countries, and for many advanced economies it remains limited. The world engaged in co-ordinated fiscal stimulus to counter the 2008 financial crisis.

Addressing questions from journalists following the launch of the Africa Economic update at World Bank offices, Monday, World Bank senior economist Gerard Kambou said that Zambia's real GDP growth projection for the present year had been projected to drop to 3.3 per cent, down from 3.5 per cent recorded last year brought about by the country's growing debt.

More than two-thirds of the expected slowdown stems from troubles in rich nations, including members of the EU.

International Monetary Fund noted that the balance of risks to the global outlook are tilted towards downside but if US-China trade differences are resolved quickly, it could surprise global growth favourably due to improved business confidence and better investor sentiment. Despite looming deadlines, London has not decided how it would try to shield its economy during the exit process.

China is expected to grow at 6.6 percent, 6.3 percent and 6.1 percent for 2018, 2019 and 2020, respectively. It said the Bank of England should be "cautious" on its interest rate policy, an apparent tip to wait before hiking borrowing costs.

"In India, continued implementation of structural and financial sector reforms with efforts to reduce public debt remain essential to secure the economy's growth prospects".

Meanwhile, the global economy is expected to slow down more than expected and the world leaders will require to coordinate to take stimulus measures.

The IMF also cut Japan's growth outlook following a string of natural disasters.

Advanced economies are expected to slow down to 1.6% growth by 2022 and remain at that rate thereafter. It is the lowest annual growth outlook since the Great Recession of 2008.

Next, the International Monetary Fund also discouraged China's support for state-owned enterprises (SOEs) which take the majority of government and bank support, starving the country's private economy and reducing productivity.

"We expect a growth recovery, growth was reasonably strong a year ago and we think that things will improve a bit going forward".

The economic outlook foresaw Bulgaria's current account balance, which ended 2018 as 3.9 per cent as a percentage of GDP, decreasing but remainining positive, with a surplus of 1.9 per cent in 2019 and 1.3 per cent in 2020. -China trade war had not materialized. Global powerhouse China did not make the cut into the top 10.

Nigeria's GDP growth rate is projected to be 2.1%.

Spain is the strong performer in the euro area with 2.1 percent growth in 2019, and 1.9 percent in 2020.

China's prospects brightened, the fund said, after President Donald Trump made a decision to suspend a planned increase in tariffs on $200 billion United States worth of USA -bound Chinese exports. China responded with retaliatory tariffs on USA goods.

The IMF also calls for laws around land reform to change, to expedite infrastructure development as well as changes to hiring and firing laws in order create jobs and "absorb the country's large demographic dividend". There was also weakened spending on consumer durables and automobiles, export orders fell as a result of the US-China trade actions, and growth fell to 6.0% in the second half of 2018, from 6.8% in the first half.

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