The International Monetary Fund – (IMF) – lowered its forecast for global economic growth for 2020 to 3.3% and 3.4% in 2021.
Slightly lower forecast
Although these are slightly lower than previous IMF forecasts they do represent a modest acceleration in growth compared with 2019.
Weaker growth
2019 saw the weakest growth since the global financial crisis, so we are looking at a performance this year that is likely to be weaker than the average for the last decade.
Rebound
The rebound is expected to be slightly more modest than the IMF predicted in October. That reflects weaker performance in a few emerging economies.
Risks remain
The report also says that risks remain. Among them, the IMF mentions international political risks, such as the conflict between the United States and Iran. However, The U.S. – China Phase One trade deal is seen as a positive element for eventual future growth.
Forecast
The forecasts for the UK are unchanged from the October figures at 1.4% and 1.5% this year and next. Those predictions are based on a structured Brexit at the end of the month followed by a gradual transition to new world economic relationships