IMF Lowers 2019 World Growth Outlook

Davos, Switzerland, Jan. 21 (Jiji Press)--The International Monetary Fund on Monday lowered its growth outlook for the global economy for this year to 3.5 pct, a reduction of 0.2 percentage point from its previous projection released in October. "Risks to global growth tilt to the downside. An escalation of trade tensions beyond those already incorporated in the forecast remains a key source of risk to the outlook," the IMF said. "A range of triggers beyond escalating trade tensions could spark a further deterioration in risk sentiment," it said, noting that they include Britain's possible "no-deal" exit from the European Union and a greater-than-expected slowdown in China. In 2018, the global economy is estimated to have grown 3.7 pct, the IMF said. The IMF raised its 2019 projection for Japan's growth by 0.2 point to 1.1 pct, citing "additional fiscal support to the economy," including measures to mitigate the effects of the planned consumption tax increase in October. It also revised up its 2020 estimate for the country by 0.2 point to 0.5 pct. The U.S. economy is forecast to grow 2.5 pct in 2019 and 1.8 pct in 2020, unchanged from the previous projections. While pointing to the influence of trade tensions between Washington and Beijing, the IMF kept unchanged its 2019 projection for China at 6.2 pct. The IMF cut its 2019 forecast for the euro area by 0.3 point to 1.6 pct. Britain's economy is projected to grow 1.5 pct this year, unchanged from the previous forecast. END