In its third downgrade since October, the global lender said some major economies, including China and Germany, might need to take short-term actions to prop up growth.
The global economy will likely grow 3.3 percent this year,its slowest expansion since 2016, the IMF said in a forecast that cut 0.2 percentage point from its January outlook. The IMF’s new forecast assumes an orderly “Brexit”but the Fund said a chaotic process could shave more than 0.2 percentage points from global growth in 2019.
Germany’s outlook suffered from weaker demand for its exports, softer consumer spending and new emissions standards which have depressed car sales. Already, U.S. tariffs on Chinese imports are hitting Chinese growth, while also weighing on Latin America and other areas dependent on Chinese demand for commodities.
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