World Economic Growth + 3.3% Forecast Slightly Lowered IMF Jan 21 5:17
The International Monetary Fund (IMF) has announced that its forecast for the world economy is likely to be slightly lower than the previous forecast, at 3.3%, mainly due to the continuing effects of trade friction between the United States and China.
The IMF has announced its latest economic outlook ahead of the opening of the Davos meeting on Tuesday, saying that global economic growth in 2020 will increase by 3.3%.
This is 0.4 points higher than last year, which was the lowest level in 10 years, but it has been revised down 0.1 points from the forecast three months ago.
Looking at the breakdown,
▼ The US slowed down 0.3 points from the previous year and added 2%,
▼ China is expected to decelerate 0.1 points to 6%.
In Japan, growth is expected to remain at a low 0.7%, although economic measures to prevent the economic downturn caused by the consumption tax hike will support the economy.
Meanwhile, the euro area is expected to rise by 0.1 points to 1.3% due to the bottoming out of Germany, which has been sluggish, and that the recovery in India and Brazil will boost the whole.
However, he added that the US has added tariffs to China and EU countries and that the US-Iran conflict is a risk factor.
"The signature of the US and China this month is good news, but the downside risks remain," said IMF Managing Director Georgieva at a press conference in Davos, saying he would stay vigilant.