The IMF cut its forecast for global GDP growth to 3.3% in its latest World Economic Outlook. It was the third downgrade of the IMF forecast in just six months’ time, pushing the growth estimate to the lowest level since the financial crisis.
Both developed and emerging European countries saw the biggest reductions in their growth forecasts as these economies are being hit especially hard by the decline in global trade, which the IMF estimates will be 0.6% this year. Some of the lower growth is explained by the weaker-than-expected start to the year, which has rolled over into this quarter. However, we still expect to see some improvement later this year, which should lead to a somewhat higher growth rate in 2020.