The International Monetary Fund reduces its global growth forecast to 3.7 percent

Media in – Nusa Dua – October 9 2018 /

 The International Monetary Fund (IMF) has lowered its forecast for global economic growth for 2018 and 2019 to 3.7 percent, 0.2 percent below its previous forecast in July of 3.9 percent, pointing out that trade policy tensions and import tariffs have negatively impacted trade. During the annual meetings of the Fund and the World Bank in the Indonesian resort of Bali, the IMF said the reduction was due to a combination of factors including the exchange of US and China tariffs on imports, the decline of the Eurozone countries, Japan and Britain and the increase in interest rates Capital flight, particularly Argentina, Brazil, Turkey and South Africa. The IMF cut its US growth forecast for 2019 from 2.7 percent to 2.5 percent while reducing its growth forecast for China in 2019 from 6.4 percent to 6.2 percent while keeping its growth forecast for 2018 unchanged at 2.9 percent for the United States and 6 percent for the United States. 6. per cent for China. The IMF also lowered its growth forecast for the euro zone in 2018 from 2.2 percent to 2 percent, with Germany particularly hurt by a decline in manufacturing orders and trade volume.