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IMF unveils cause of slowdown in world economy

22.01.2019,12:35


January, Fineko/abc.az. One of the main causes of slowdown in the global economy is trade war between the U.S. and China.

The statement was made by IMF’s managing director Christine Lagarde at the current international forum in Davos.

According to new IMF data, the world economy will grow by 3.5% in 2019 and 3.6% in 2020 that is lower than the previous forecast by 0.2 and 0.1% respectively. The IMF predicts that in the coming year the US economy will grow by 2.5% and the Chinese one by 6.2 %.

Among the possible risks that could further slow the world economy, called by the IMF experts, is UK's withdrawal from the EU without an agreement. In particular, IMF Research Department’s deputy director Gian Maria Milesi-Ferretti regards to Brexit itself without approval.

"In our opinion, in the medium-term prospect, the decision of the UK, whose economy depends much on trade and, especially trade services, to distance itself from its main trading partners, will lead to additional costs," the deputy director considers.

 

Keywords: IMF