China’s 2019 growth rate again cut by IMF as US trade war, Brexit leaves world economy in ‘precarious’ position
- Washington-based International Monetary Fund (IMF) predict in their latest report that China’s growth will be 6.1 per cent in 2019 and 5.8 per cent in 2020
- Chief economist Gita Gopinath says there is an ‘urgent need’ to de-escalate trade and geopolitical tensions as IMF also cuts 2019 global growth forecast to 3 per cent
China’s economic growth rate will remain just inside the government's target range in 2019 despite the International Monetary Fund again downgrading their prediction, while warning the outlook for the world economy “remains precarious.”
The Washington-based International Monetary Fund (IMF) predicted in their latest report released on Tuesday that China’s growth will be 6.1 per cent in 2019 and 5.8 per cent in 2020.
The IMF also cut its global economic growth forecast for 2019 to 3 per cent, which would be the slowest rate since the global financial crisis a decade ago. It is the fifth consecutive occasion that the IMF has downgraded their prediction for the global economy amid the US-China trade war as well as others factor including Britain’s protracted exit from the European Union having published a forecast of 3.9 per cent in July 2018.
The global outlook remains precarious. At 3 per cent growth, there is no room for policy mistakes and an urgent need for policymakers to cooperatively de-escalate trade and geopolitical tensions
“Downside risks to the outlook are elevated,” said IMF chief economist Gita Gopinath. “Trade barriers and heightened geopolitical tensions, including Brexit-related risks, could further disrupt supply chains and hamper confidence, investment, and growth.