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In its latest World Economic Outlook released this week, the International Monetary Fund gave a rather downbeat assessment of global financial conditions.
The IMF warned that global growth is projected to fall to just 3% this year. This marks its lowest levels since the 2008 financial crisis, dropping down from 3.8% in 2017.
This latest forecast is a -0.2% revision from the last one issued in July.
The group cautioned that should the rate of global growth slip below 2.5%, this would signify a recession.
Gita Gopinath, the IMF’s chief economist, warned over the handling of such conditions, saying:
“At 3% growth, there is no room for policy mistakes and [there is] an urgent need for policymakers to cooperatively de-escalate trade and geopolitical tensions.”
The IMF has noted that world trade volume growth was just 1% over the first half of 2019. This its lowest level since 2012.
The report cited the ongoing trade war between the US and China as the chief driver for the...
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