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IMF cuts growth outlook

Credit: Reuters Studio
Published on April 9, 2019 - Duration: 01:08s

IMF cuts growth outlook

The International Monetary Fund cut its global economic growth forecasts for 2019.

As Fred Katayama reports, it blamed U.S.-China trade tensions and Britain's messy divorce from the E.U., among other things.

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IMF cuts growth outlook

The United States' trade war and tariff hikes with China are hurting the global economy.

The International Monetary Fund cut its outlook for global economic growth for a third time.

It now sees the world economy expanding 3.3 percent this year.

That's two-tenths percentage points less than its earlier forecast.

Germany, Italy and Mexico got the deepest downgrades.

But the U.S. also saw its forecast shaved on signs that the fiscal stimulus fueled by tax cuts is fading.

The IMF pointed the finger at U.S.-China trade tensions and Britain's messy divorce from the European Union, among other things.

It says an escalation in that trade war with China would drive manufacturing away from both countries.

It would also hurt Latin America and other regions that depend on selling commodities to China.

Trade tensions between the U.S. and Europe are also intensifying.

U.S. President Donald Trump has threatened to impose tariffs on $11 billion worth of European Union products.

The EU said it would respond in kind.It's all part of a long-running dispute over what both sides claim are UNFAIR subsidies to Airbus and Boeing.

It's a fight some fear could turn into a broader trade battle.

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