The International Monetary Fund predicts the world economy will strengthen in 2020, albeit at a slightly weaker pace than previously anticipated amid threats related to trade and tensions in the Middle East.
Global growth will accelerate this year to 3.3% from 2.9% in 2019, the fund said on Monday. That’s the first pickup in three years, but less than the 3.4% projected in October. The 2019 estimate was reduced for a sixth time. Their other take on the economy for the year 2020 is that –
- Climate change is already having an impact on the global economy.
- Countries must ensure the vulnerable are protected in order to maintain social cohesion.
- Despite the note of optimism, significant risks remain.
Other key findings in this year’s report include:
- Global economic growth for this year has been revised downwards from 3.4% to 3.3%, according to the International Monetary Fund.
- The IMF attributed “the lion’s share” of the downward revision to “a more subdued growth forecast” for India.
- China’s growth forecast for 2020 was revised higher by 0.2 percentage points to 6%, while that of the U.S. was marked down by 0.1 percentage points to 2.0%, said the fund.