The International Monetary Fund has cut its world economic growth forecasts for this year and the next, citing trade tensions and risks surrounding Brexit.
For more on this and other news around the world we turn to our Ro Aram…
Aram… another grim outlook from the IMF.
That's right Mark… The IMF predicts the global economy to grow at 3.5 percent in 2019 and 3.6 percent in 2020.
It is the second downgrade in three months by the global lender
The previous forecast for this year was 3.7 percent.
The IMF's latest report cited the unresolved trade war between the United States and China, and the possibility of Britain exiting the European Union without a deal.
It also attributed the grim outlook to slowing economic growth in Europe, especially Germany and Italy.
At the World Economic Forum in Davos, IMF chief Christine Lagarde allayed fears of a global recession, but noted policymakers had to do more to slow the downturn.
"Does that mean that a global recession is around the corner? No. But the risk of a sharper decline in global growth has certainly increased. Add to this the uncertainty, the geopolitical worries and disappointing long-term growth prospect and you have an economic picture with a pretty clear message. And the message is the following for policymakers: address remaining vulnerabilities and be ready if a serious slowdown were to materialise."
The IMF, however, maintained its U.S. growth projections of 2.5 percent this year and 1.8 percent next year, pointing to continued strength in domestic demand.
It also kept its China growth forecast for this year and next at 6.2 percent, but said economic activity could miss expectations if trade tensions with the U.S. persist.
However, Monday's IMF report came just hours after data showed China's growth last year dropped to its lowest in nearly three decades.
