IMF cuts global growth forecast to 3.3% for 2019

The International Monetary Fund (IMF) on Tuesday (local time) lowered its global growth forecast for 2019 to 3.3 per cent from the previous level of 3.5 per cent in its latest World Economic Outlook (WEO).

The IMF warned of possible risks to the world economy, including trade tensions, increasing inequality and political instability.

This is the third time in the last six months that the IMF has cut its global outlook forecast. it has also projected a decline in growth for 70 per cent of the world economy this year.

"This is a delicate moment," Al Jazeera quoted IMF Chief Economist Gita Gopinath saying at a press briefing here.

The WEO underlined that 3.3 per cent expansion is "still reasonable", but warned that the outlook is still "challenging for several countries owing to possible flaring up of trade tensions.

"It's very important that policymakers do no harm and work cooperatively," Gopinath said.

Despite the forecast cut for 2019, the IMF is expecting the world economy to gain pace in the second half of this year owing to more growth-friendly policies from central banks, Al Jazeera reported.

After 2020, the IMF has predicted the global growth forecast will stabilise at around 3.5 per cent, mainly due to high growth in India and China.