Through a glass darkly

15 October 2019 By Swaha Pattanaik Follow @swahapattanaik

The international lender cut its growth predictions for this year and next. Issues like trade wars and Brexit make it hard to forecast how some of the most advanced economies will perform. If there are stumbles, these are also the countries least likely to heed IMF advice.

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The International Monetary Fund on Oct. 15 cut its global growth forecasts for 2019 and 2020 to 3% and 3.4% respectively. That compared with its April prediction that the world economy would grow 3.3% in 2019 and 3.6% in 2020.

IMF Chief Economist Gita Gopinath said that while global growth was expected to improve modestly in 2020, “this recovery is not broad based and is precarious”. She also said that downside risks to the outlook were elevated and that a realisation of some of these risks could lead to an abrupt shift in sentiment and expose financial vulnerabilities that had built up over years of low interest rates.

The IMF and World Bank annual meetings are taking place in Washington, D.C. from Oct. 14-20.

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