World economy to grow 3.9% this year: IMF
- 6 years ago
The International Monetary Fund is keeping its original forecast for global economic growth unchanged this year,... despite concerns over rising trade tensions and higher oil prices.
However, they warn of growing damage from the trade spat between the U.S. and China.
Lee Seung-jae reports.
Despite the growing concerns over rising trade tensions and rising oil prices worldwide,... the International Monetary Fund has left its global economic growth forecast unchanged at 3-point-9 percent for both 2018 and 2019,...
compared to its previous forecast issued back in April.
According to the IMF's Chief Economist Maury Obstfeld,... these projections only take into account tariffs currently in force,... so larger actions such as possible automobile tariffs were not included.
Despite the growth forecast being kept unchanged,... Obstfeld added that growth momentum was slowing.
While the IMF round down the growth projections to reach the 3-point-9 percent forecast in April,... for the July forecast,... the numbers were rounded up slightly to reach the same figure.
The forecast for the two countries in the middle of a huge trade spat were both unchanged, as well,... as the U.S. growth forecast was pegged at 2-point-9 percent in 2018 and 2-point-7 percent in 2019,... while China's growth was forecast at 6-point-6 percent in 2018 and 6-point-4 percent in 2019.
The IMF warns,... that the escalating trade conflict following the U.S. tariff actions threaten to derail the economic recovery and depress medium-term growth forecasts.
Taking into consideration the potential damage from the full brunt of President Trump's tariff threat,... combined with the subsequent retaliation from trading partners,... the annual global economic output maybe reduced by zero-point-five percent from projections for 2020.
That translates to close to 500-billion dollars in lost annual output based on IMF projections,... which is the equivalent of subtracting an economy the size of Thailand.
Lee Seung-jae, Arirang News.
However, they warn of growing damage from the trade spat between the U.S. and China.
Lee Seung-jae reports.
Despite the growing concerns over rising trade tensions and rising oil prices worldwide,... the International Monetary Fund has left its global economic growth forecast unchanged at 3-point-9 percent for both 2018 and 2019,...
compared to its previous forecast issued back in April.
According to the IMF's Chief Economist Maury Obstfeld,... these projections only take into account tariffs currently in force,... so larger actions such as possible automobile tariffs were not included.
Despite the growth forecast being kept unchanged,... Obstfeld added that growth momentum was slowing.
While the IMF round down the growth projections to reach the 3-point-9 percent forecast in April,... for the July forecast,... the numbers were rounded up slightly to reach the same figure.
The forecast for the two countries in the middle of a huge trade spat were both unchanged, as well,... as the U.S. growth forecast was pegged at 2-point-9 percent in 2018 and 2-point-7 percent in 2019,... while China's growth was forecast at 6-point-6 percent in 2018 and 6-point-4 percent in 2019.
The IMF warns,... that the escalating trade conflict following the U.S. tariff actions threaten to derail the economic recovery and depress medium-term growth forecasts.
Taking into consideration the potential damage from the full brunt of President Trump's tariff threat,... combined with the subsequent retaliation from trading partners,... the annual global economic output maybe reduced by zero-point-five percent from projections for 2020.
That translates to close to 500-billion dollars in lost annual output based on IMF projections,... which is the equivalent of subtracting an economy the size of Thailand.
Lee Seung-jae, Arirang News.