IMF trims global GDP forecast to 2.9%, flags reform issues in trade system

Photo: Reuters

The International Monetary Fund (IMF) on Monday slightly revised downwards the growth outlook for the global economy and flagged fundamental issues of reform in trade systems.

The new projections estimate growth at 2.9 per cent in 2019, 3.3 per cent in 2020 and 3.4 per cent in 2021.

Ahead of the inaugural of the World Economic Forum (WEF) annual summit here, IMF Managing Director Kristalina Georgieva said the fund's simplest advice to policymakers is that they should keep doing what works.

She cautioned that everyone must be ready to act again and immediately in a coordinated manner if growth begins to slow down again.

Noting that a turning point is yet to be reached, the IMF said it was slightly revising downwards the growth outlook for the global economy.

Fundamental issues of reform in trade systems still there and we have seen there have been some developments in the Middle East, Georgieva.

IMF's Chief Economist Gita Gopinath said some risks have partially receded since October with developments on US-China trade deal.

The slight downward revision of 0.1 per cent for two years and 0.2 per cent for the year after that in the global growth is largely due to downward revision for India estimates, she said.

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