The International Monetary Fund (IMF) expects the world economy to grow in 2020, but less rapidly than previously expected. The world economy is growing less rapidly than previously thought due to constant trade tensions and rising tensions in the Middle East.
The IMF writes in its World Economic Outlook that the global economy will grow by 3.3 percent in 2020, an increase of 0.4 percentage points compared to last year. The growth figure for 2020 is therefore 0.1 percentage point lower than a previous estimate in October. This means that the forecasts for 2020 have been lowered for the sixth time.
The IMF is hopeful that the risks that can further lower the global economy are less significant. For example, the monetary fund sees the manufacturing industry and the trade sector approaching the lowest point. This is partly due to the sub-agreement between the United States and China signed on Wednesday.
The UN organization also investigated the impact of the central bank stimulus measures. Without these measures, the global economy would have grown by 0.5 percentage point less in 2019 and 2020.
For 2021, the IMF predicts a world economy growth of 3.4 percent. This forecast is also lower than previously expected: in October the UN organization predicted a growth of 3.6 percent for 2021.