IMF cuts global growth estimate to 3.3%

The International Monetary Fund on Tuesday cut its global growth estimate from 3.5% to 3.3% as the world economy lost steam.

Tuesday’s World Economic Outlook marks the third in six months and sees global growth two-tenths lower than the January forecast and four-tenths lower than October’s.

IMF chief Economist, Gita Gopinath said, “global growth softened to 3.6 percent in 2018 and is projected to further slow to 3.3 percent in 2019.”

The IMF however projects world growth to pick up in the second part of 2019 and hit 3.6% in 2020.

According to the organisation, trade tensions and tariff hikes between the United States and China, a decline in business confidence, a tightening of financial conditions, and higher policy uncertainty across many economies, further contributed to its forecast.