The international organization’s total outlook for 2019 shows a weak increase of the global GDP due to the slowdown of trade and industry.
The weakest growth in the last decade. For almost two years, protectionism measures in the United States boosted by Donald Trump has put a stop to the global growth. The International Monetary Fund cuts its previsions for global economy as it will continues to drop this year with a weak increase of 3%, the lowest since the crisis.
“This subdued growth is a consequence of rising trade barriers; elevated uncertainty surrounding trade and geopolitics; idiosyncratic factors causing macroeconomic strain in several emerging market economies; and structural factors, such as low productivity growth and aging demographics in advanced economies.” explained the document presented today in Washington.
The IMF cuts its forecast for global growth this year
This lower growth reflects a wide slowdown in industrial output “resulting from weaker external demand the widening global repercussions of trade tensions and increased uncertainty on confidence and investment; and a notable slowdown in global car production”, stated the document.
Especially noticeable for its low growth are Eurozone countries such as Germany and Italy, that will grow very little or have stagnated. Japan, on the other hand, will increase its GDP less than 1% this year and the next.
The IMF has lowered the American growth forecast by two percentage points compared to what it said three months ago, leaving it at 2.4% this year and 2.1% next. These forecasts could be further reduced if trade war measures of the United States with China and Europe continue, or if Brexit ends up being resolved without a deal.