IMF cuts forecast of world economy growth by 0.1 percent

Source : 112 Ukraine

The new forecast for 2019 makes 3.2-percent growth rate; in 2020, it is expected to make 3.5 percent
21:07, 23 July 2019

Open source

The IMF has somewhat lowered the forecast of the world's economic growth. The difference made 0.1 percent. The new forecast for 2019 makes 3.2-percent growth rate; in 2020, it is expected to make 3.5, reads the World Economic Outlook's edition of this month.

"GDP releases so far this year, together with generally softening inflation, point to weaker-than-anticipated global activity. Investment and demand for consumer durables have been subdued across advanced and emerging market economies as firms and households continue to hold back on long-range spending. Accordingly, global trade, which is intensive in machinery and consumer durables, remains sluggish", reads the report. 

Related: Ukraine negotiates with IMF on long-term program, - Finance Minister

In general, the indexes worsened, by contrast with the April forecast. "The emerging market and developing economy group is expected to grow at 4.1 percent in 2019, rising to 4.7 percent in 2020. The forecasts for 2019 and 2020 are 0.3 and 0.1 percentage point lower, respectively than in April, reflecting downward revisions in all major regions (...) Activity in the Commonwealth of Independent States is projected to grow at 1.9 percent in 2019, picking up to 2.4 percent in 2020. The 0.3 percentage point downward revision to 2019 growth reflects a downgrade to Russia’s outlook following a weak first quarter," the note goes on.

Related: Christine Lagarde announces resignation as IMF Managing Director

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