IMF Predicts Slowest Global Economic Gains Since Great Recession, Blames Tariffs
Axios reported on Monday that the International Monetary Fund has revised projected global economic growth downward, now predicting the biggest slowdown since the 2008 financial crisis.
The IMF lowered its forecasted growth from the 3.2 percent predicted in July to 3 percent and pointed to President Donald Trump’s ongoing trade wars, particularly with China, as well as rising political tensions across the globe as reasons for the downturn.
IMF chief economist Gita Gopinath said trade tensions between China and the U.S. “will cumulatively reduce the level of global GDP by 0.8% by 2020,” as a slowdown in global trade affects manufacturing and investments.
Axios noted that due to trade policies constituting the primary economic drag, “a revival of the global economy in the hands of politicians, not central bankers whose tools may not be enough to stave off a trade war-prompted slowdown.”