The trade dispute between Beijing and Washington impacted the world economy. The good news For the Eurozone, the forecast remains unchanged. The forecast for Germany is slightly dimmed.
Cranes at the port of Hamburg (icon image)
The International monetary Fund (IMF) is looking increasingly sceptical on the global economy. In 2019 the world economy to expand by only 3.2 per cent and next year by 3.5 percent, said the IMF. The Institution must reduce its forecast this year for the third Time easily. In April, the Fund had predicted a growth of 3.3 percent.
The recent correction is justified, among other things, with the trade dispute between China and the United States. Both countries have imposed punitive tariffs against each other. In addition, due to U.S. sanctions, global supply chains could be broken, it means – apparently an allusion to the conflict between the U.S. government and the Chinese technology company Huawei. The uncertainty in the Wake of the planned British withdrawal from the European Union and the tensions in the Gulf region will dim the perspective.
Germany falls back slightly
The economy in the Euro-zone will increase in 2019 from the point of view of the IMF unchanged at 1.3 percent. For 2020, the Fund is raising its forecast by 0.1 percentage points to 1.6 percent. The economy in Germany is expected to grow due to weaker international demand for German products this year, 0.1 percentage points slower, namely by 0.7 per cent. For the coming year, the IMF is forecasting an increase of 1.7 percent. Here is a revised Definition of gross domestic product (GDP), however, plays into this.
For the US, the Fund raised its forecasts because of surprisingly good start to the Year, to 2.6 (previously a 2.3 percent). For 2020 of 1.9 percent is expected. In terms of China, the IMF, however, is skeptical: The local economy is expected to grow in 2019 6.2 (previously 6.3 percent), and 2020 of 6.0 (with 6.1 percent).
jj/kle (dpa, rtr)