DAVOS, Switzerland (Reuters) – The International Monetary Fund trimmed its global growth forecasts on Monday and a survey showed increasing pessimism among business chiefs as trade tensions and uncertainty loomed over the world’s biggest annual gathering of the rich and powerful.
The gloomy IMF forecasts, released on the eve of the World Economic Forum in Davos, Switzerland, highlighted the challenges facing policymakers as they tackle an array of actual or potential crises, from the U.S.-China trade war to Brexit.
Years - Expansion - World - Economy - Risks
“After two years of solid expansion, the world economy is growing more slowly than expected and risks are rising,” IMF Managing Director Christine Lagarde told reporters.
“Does that mean a global recession is around the corner? No. But the risk of a sharper decline in global growth has certainly increased,” she said, urging policymakers to brace for a “serious slowdown.”
World - Economic - Outlook - Report - Monday
In its World Economic Outlook report released on Monday, the IMF predicted the global economy will grow at 3.5 percent in 2019 and 3.6 percent in 2020, down 0.2 and 0.1 percentage point respectively from last October’s forecasts.
“There are so many variables and so much uncertainty globally, from the trade tension to geopolitical changes, so a lot of market activity and market sentiment are out of our control,” Laura Cha, chair of the Hong Kong stock exchange, told Reuters Television.
IMF - Signs - Weakness - Europe - Export
The IMF downgrades mainly reflected signs of weakness in Europe, with its export powerhouse Germany hurt by new fuel emission standards for cars and with Italy under market pressure due to Rome’s recent budget standoff with the European Union.
The global lender also cited a bigger-than-expected slowdown in China’s economy and a possible “No Deal” Brexit as risks to its outlook, saying these could worsen market turbulence.
Survey - PwC - Chief - Executives - Percent
A survey by auditing and accounting giant PwC of nearly 1,400 chief executives found that 29 percent believe global economic growth...
Wake Up To Breaking News!
Satan's greatest desire is to convince the world he doesn't exist, and he has quite nearly succeeded.