International Monetary Fund warns trade tensions could disrupt global growth

The report comes as US President Donald Trump has imposed steep tariffs duties on $34 billion in imports from China, with another $200 billion coming as soon as September, on top of duties on steel and aluminum from around the world including key allies.

The International Monetary Fund (IMF) has revised the growth rate of sub-Saharan Africa's economy to 3.8% for 2019, up from April's growth projection of 3.7%.

"Amid rising tensions over worldwide trade, the broad global expansion that began roughly two years ago has plateaued and become less balanced", said IMF economic counsellor and director Maury Obstfeld.

The IMF left unchanged its global growth forecasts at 3.9% for both 2018 and 2019, compared to its previous forecast issued in April.

"The IMF had pointed out in April that good times in the global economy will not last and that "jarring" contradictions between growth momentum and a conflict over trade" will ultimately slowdown the global economy.

The impact is not just in terms of prices but the damage to business and financial market sentiment, which would lead to a "negative shock to investment".

However, the International Monetary Fund numbers are lower than the United Nations growth estimate of 7.5 per cent for this year and 7.6 per cent for the next year made in May in the World Economic Situation and Prospects.

The IMF also warned that a global trade war threatened worldwide growth and flagged uncertainties in the EU.

However, the report said that without steps to "ensure the benefits are shared by all, disenchantment with existing economic arrangements could well fuel further support for growth-detracting inward-looking policies".

The IMF, however, noted that even the USA growth could decelerate over the next few years, as the long cyclical recovery ran its course and the effects of temporary fiscal stimulus waned.

"Its growth is set to increase from 0.8 percent in 2017 to 2.1 percent in 2018 and 2.3 percent in 2019 (0.4 percentage point higher than in the April WEO for 2019) on the back of an improved outlook for oil prices".

Forecasts for the United States and China were both unchanged, with US growth pegged at 2.9 percent in 2018 and 2.7 percent in 2019.

But for the Euro zone, it cut the growth projections by 0.2 per cent to 2.2 per cent for this year and by 0.1 per cent to 1.9 per cent for next year.

In contrast, GDP continued to grow faster than potential and job creation was still robust in the United States, driven in large part by recent tax cuts and increased government spending.

Italy and France would then see their growth fall even further in 2019.

The IMF said that if these threats are implemented, it could reduce annual global economic output by 0.5 percent from projections for 2020.

Related News:

  • Financial regulators turn watchful eye to cryptocurrency market

    Financial regulators turn watchful eye to cryptocurrency market

    The sweeping regulatory initiative sees other worldwide regulatory bodies also undertaking "substantial work" with their own crypto-related mandates.
    Ofcom issues verdict on Love Island 'emotional distress' concerns

    Ofcom issues verdict on Love Island 'emotional distress' concerns

    Caroline tempts them by revealing that four new contestants - two boys and two girls - will arrive in the villa tonight. The decision didn't end up sitting too well with Dani, who has been one of G's biggest supporters up until this point.

    Brazilian bird-eating tarantulas found in Derbyshire auto park

    The others contained the babies and also eggs. "The RSPCA would always ask people who are struggling to cope to let us know". They are black in colour, but once mature develop pink-red hairs along their bodies - giving them a salmon pink look.
  • Five miners killed in fire at South African copper mine

    Five miners killed in fire at South African copper mine

    The bodies of three mine workers were later recovered from the chamber, the union said. "The search for one employee continues". The fire is reported to have been extinguished, but temperatures are still in excess of 50 degrees Celsius in parts.

    Usain Bolt secures trial contract with A-League side Central Coast Mariners

    The team was co-coached by Eric Cantona and Harry Redknapp, who previously served as an "advisor" to the Mariners in 2016. The fastest man in history has joined Central Coast Mariners, in Australia's top league.
    Activists land funds to fly 'Trump baby' blimp in US

    Activists land funds to fly 'Trump baby' blimp in US

    President Donald Trump is flown as a protest against his visit, in Parliament Square in London, England, Friday, July 13, 2018. An undated stock photo of Central Park in NY .
  • Trump's 2020 Campaign Already Has Big Warchest

    Trump's 2020 Campaign Already Has Big Warchest

    No other USA president has ever launched a re-election campaign, technically or ceremonially, so early. Per Buzzfeed, the campaign raised $8.4 million and spent $3.6 million between April and July.
    Rumours Suggest That The Samsung Galaxy S10 Will Come In Three Sizes

    Rumours Suggest That The Samsung Galaxy S10 Will Come In Three Sizes

    Multiple reports also claimed that Samsung will rush to make the device available in the market. A 5.8-inch screen, a 6.1-inch screen, and a 6.4-inch screen.
    Panos Panay puts the kibosh on an immediate Surface Phone release

    Panos Panay puts the kibosh on an immediate Surface Phone release

    In an interview with Wired, Microsoft's Surface head Panos Panay confirmed that the company is working on new form factors. Launching a traditional smartphone does not align with this strategy and has not worked will with Microsoft in the past.
  • Ladies of London Star Annabelle Neilson Dead

    Neilson appeared on seasons one and two of " Ladies of London ", announcing her departure from the series in November 2015. Annabelle Neilson , best known for starring in Bravo's now-cancelled reality show " Ladies of London ", died on Thursday.

    Stock Tanks on Weak Subscriber Adds — Netflix Earnings

    In the second quarter previous year , it added 5.2 million - 1.1 million United States subscribers and 4.1 million global ones. For the current quarter, the company is projecting revenue of $3.988 billion, below the consensus for $4.126 billion.
    8 endangered black rhinos die in Kenya

    8 endangered black rhinos die in Kenya

    The more salty water the rhinos drank, the thirstier they became, leading to a vicious cycle, the ministry reported on July 13. Prominent Kenyan conservationist Paula Kahumbu of WildlifeDirect calls the loss of the rhinos "a complete disaster".


Most liked

Tiger Woods prepares strategy for 'most difficult' British Open
Woods had finished T7th behind Scotland's Paul Lawrie in 1999 and T12th in 2007 when Ireland's Padraig Harrington won also in a play-off.

Arsenal caught up in fraud case involving Chinese partner carmaker BYD
This includes our partnership with BYD which was formally launched by both parties at an event at the Emirates on 8th May. The Gunners revealed in April that they had penned a deal with "the world's best-selling electric vehicle manufacturer".

Under the continental plates are 1000 trillion tons of diamonds
The number they came up with was 10 tons of diamonds, or more than 1,000 times more than previously thought. Vibrations from earthquakes and tsunamis tend to speed up when passing through cratonic roots.

Nokia X5 could be officially introduced on July 17
After the July 11 event was cancelled for unspecified reasons , the Nokia X5 will now be launched tomorrow (July 18). An older report suggested that the price of the Nokia X5 could exactly be set at CNY 799 (roughly Rs. 8,200).

Putin summit opens without talk of election meddling
We are going to negotiate arms treaties and talk out our differences as Ronald Reagan did with Mikhail Gorbachev. European allies have freeloaded off USA defense while rolling up huge trade surpluses at our expense.

In Pics: Nag With Alia & Ranbir - Movie News
Ayan (film's director Ayan Mukerji) will never make a character that doesn't have truth to it, or which is unbelievable. I think my last Hindi film was Mahesh Bhatt's directorial venture "Zakhm" in which Pooja Bhatt played the lead role.

Murphy's big hit helps Nationals beat Mets 6-1
The Mets will end a pair of ignoble streaks if they can win a third straight game on Sunday. "That's really going to help us". Nationals: Martinez said Strasburg (6-6, 3.46 ERA) could return to the rotation Friday night at home against Atlanta.

UK's May survives Parliament Brexit rebellion, but loses another minister
She joined fellow Tory rebel Phillip Lee, who resigned as a justice minister to oppose the Government on Brexit. Brexit negotiations officially began in June 2017 and are expected to be completed by the end of March 2019.

Dr M disappointed over cool response to second national auto
He said foreign cars monopolised the auto market in Malaysia to the point that Proton is "buried" and sold off to foreign entities.

International Monetary Fund lowers India’s growth projection to 7.3% in 2018
The Fund had noted in April that China's steadily slowing growth improved to 6.9pc - the first such growth since 2011. Maurice Obstfeld, Economic Counsellor and Director of the Research Department at the International Monetary Fund .

Put pressure on Iran, Trump urges Putin at historic summit
The White House correspondent for the Associated Press became the hero we all needed when he boldly went where Mr Trump would not. COSTER: A lot of people are stating that Trump's comments today give Putin a blank check in terms of his future behavior.

Trump sits down with Putin after denouncing past U.S. policy on Russian Federation
Trump reached out to shake Putin's hand, before the media were ushered out. Trump says he hopes for better relations with the Russian leader.

MLB Home Run Derby: Participants, Format, Odds & More
With the clock dwindling in the final minute of the 2018 Home Run Derby finals, Bryce Harper looked to be in serious trouble. The format has batters face off against each other in timed competitions to see who can hit the most home runs.

Prime Day has started with outages on Amazon.com
Interested in Amazon? Add Amazon as an interest to stay up to date on the latest Amazon news, video, and analysis from ABC News. Shoppers will have plenty of sales to choose from as other retailers offer promotions to try to take a share of the spending.

Watch Free Clips - Sacha Baron Cohen's 'Who Is America'
The segment is led by one of Cohen's new characters for the series, a fake Israeli "anti-terror expert" called Col. Erran Morad, who introduces a fake program, "Kinderguardians", which would arm children as young as three.