IMF Revises 2019 Global Economic Growth Forecast Downward Due to European Slowdown and Trade War

The International Monetary Fund (IMF) earlier this year again cut its projections for global economic growth in 2019 and 2020. The revision was driven by weakening economies in Europe and several developing countries, and the failure to resolve trade war tensions, which have destabilized and slowed global economic growth.

In its release, the IMF cut the 2019 global economic growth projection by 0.2 percentage points to 3.5% from its previous projection, and the 2020 projection by 0.1 percentage points to 3.6%. Furthermore, the IMF also revised the 2019 growth projection for advanced economies downward by 0.1 percentage points to 2% from its previous forecast, and for emerging market and developing economies globally by 0.2 percentage points to 4.5% from its previous forecast.

The IMF also cut the 2019 growth projection for emerging market and developing economies in Europe by 1.3 percentage points to just 0.7% from its previous forecast, and revised the 2020 projection downward by 0.4 percentage points to 2.4% from its previous forecast. The IMF did not revise its projections for emerging market and developing economies in Asia, which remain a key driver of global growth.