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The global fashion business journal

20 Aug 201909:30

FMI lowers global growth forecast

The entity anticipates a worst scenario for the global economy, with a rise of 3.2% this year and 3.5% for the next one, one pointer less of what was forecasted in April.

23 Jul 2019 — 19:30
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FMI lowers global growth forecast

 

 

Darker clouds rise upon the global economy. The International Monetary Fund in its last World Economic Outlook states that the global economy growth remains subdued with a rise of 3.2% this year and 3.5% for the next one, one tenth less of what was forecasted in April. Geopolitical instability, uncertainty and raising tariffs are key elements that affected the results.

 

“Since the last report, United States has raised even more tariffs over some Chinese imports and China responded raising tariffs on a subset of US imports. After the G20 summit that took place past June, additional escalation was avoided” states FMI in its report.

 

United States takes the lead as the county with the highest growing numbers, with a rise of 2.6%. 0.3 higher than what was forecasted in April for the end of this year and moderating 2.9% in 2020. The revision of 2019 growth reflects better result than anticipated last April, with imports in the rise and softer domestic demand.

 

 

 

 

The eurozone on the other hand, is projected to grow 1.3% in 2019 and 1.6% in 2020, one pointer higher than in April. Germany with a slight backdrop because of a weaker than expected external demand. France remains the same, where the fiscal measures are expected to support the growth. United Kingdom its set to expand 1.3% in 2019 and 1.4% in 2020, with numbers also in a slow rise, while the Brexit uncertainty remains and the rising in geopolitical tensions grow, the report states.  

 

In Spain things seem to be playing in positive numbers, with a rise of 2.3% in 2019 and 1.9% in 2020, which goes two pointers higher than what was forecasted in April by the FMI, ranking the country as the second grand economy with the biggest development this year only after United States.

 

Even if the forecast lowers its numbers compared to last’s April reports, the eurozone is expected to pick over in what is left of this year and into 2020, due to the projection of rise in the demand and temporary factors such as the dip in German car registrations and French street protests as they continue to fade.

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