- The International Monetary Fund downgrades its global growth forecast to 3.5% from 3.7% in its October outlook.
- The negative revision is partly due to the negative impact of U.S. and China tariff increases. Notes that risks to economic growth are “tilted to the downside,’’ citing the threat of a widening trade war, Brexit, and a steeper-than-anticipated slowdown in China.
- IMF leaves U.S. growth forecast at 2.5% and China at 6.2%; decreases euro-area outlook to 1.6% from 1.9%; and boosts Japan outlook to 1.1% from 0.9%.
- "Financial conditions have already tightened since the fall. A range of triggers beyond escalating trade tensions could spark a further deterioration in risk sentiment with adverse growth implications, especially given the high levels of public and private debt."
- Source: IMF World Economic Outlook
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