Global Disasters and Geopolitical Tensions Prompt IMF to Cut 2020 Economic Growth Forecast
- A Small Font
- A Medium Font
- A Bigger Font
The International Monetary Fund (IMF) has lowered its 2020 economic growth projection to 3.3%, down from the 3.4% projected in October 2019. This reduction is influenced by concerns over geopolitical tensions and natural disasters.
Threats remain, such as US-Iran geopolitical tensions affecting the global oil supply, higher tariff barriers imposed by the US on its trading partners, and weather-related disasters including tropical storms, floods, droughts, and wildfires. These disasters increase humanitarian costs and loss of livelihoods in various regions.
The economic growth projection for developing countries and Asia has also been cut by 0.2% to 5.8% in 2020. One example is India, whose projection was reduced by 1.2% to 5.8%. This reduction reflects slower-than-expected domestic demand amid pressure on the non-bank financial sector and a decline in credit growth. Meanwhile, China's projection has been revised upward by 0.2% to 6% in 2020. This increase is a result of the phase-one trade deal with the US.
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."
Related Data
Latest Data Stories
Trending Topics
Popular Data