IMF slashes GDP growth estimates for China, US and world as trade tensions rise
Outlook for American economy this year took a hit during the first quarter, according to the latest World Economic Outlook report
The cut is larger than the world’s average. The Washington-based financial organisation slashed this year’s global economic growth estimate by 0.5 percentage points to 2.8 per cent.
“The downward revision is a result of greater policy uncertainty, trade tensions and a softer demand outlook, given slower-than-anticipated consumption growth,” the IMF said in the report.
07:36
IMF slashes GDP growth estimates for China, US and world as trade tensions rise
It also revised up US inflation by 1 percentage point to 3 per cent, citing “stubborn price dynamics in the services sector, as well as a recent uptick in the growth of the price of core goods and the supply shock from recent tariffs”.
