Trade conflicts and the weak growth rates in a number of countries in the global economy. Also for Germany, the economy are bleak prospects. The IMF lowers its growth forecast.
Container in the port of Hamburg
In the face of unresolved trade conflicts and a threat of unregulated Brexits the International monetary Fund (IMF) expects global economic output will rise this year by only 3.5 percent and in 2020 by 3.6 percent. This is one of the “World Economic Outlook”, the IMF presented in the run-up to the world economic forum, which begins on Tuesday in Davos.
In October, the IMF had said, for both years, 3.7 percent advance. “We believe that the risks are for a stronger increase of the downward correction,” writes the IMF. The fluctuations in the financial markets in the industrial countries, and trade conflicts.
IMF Chief Christine Lagarde presented the economic forecast on the occasion of the world economic forum in Davos
For the German economy, the forecast for the current year was reduced from 1.9 to 1.3 per cent, while for 2020 to 1.6 percent is expected. But also in the Eurozone, busy, busy, busy. In Germany, the discussion about diesel driving bans have weakened the economic climate. In Italy reigned Ensure the stability of the state, households and the financial sector – that have weakened the domestic demand.
Budget dispute burdened the US economy
For the United States are forecast to 2019 2.5 percent, while it will be 2020 by only 1.8 percent. “The Expansion in the US continues, but the forecast assumes a slowdown after the expiry of the fiscal incentives,” said the Fund. A further danger for the US economy, a prolonged budget dispute, by the hundreds of thousands of state money staff currently receive.
For the world’s number two China, the IMF predicts that both for this and for the next year, an increase of 6.2 percent. 2018, the growth was down to 6.6 percent, the lowest since almost three decades. “China’s slowdown could be more pronounced than expected, especially if the trade tensions persist.” The United States and China have covered in the past year, each other with punitive tariffs and are looking for a way out of the conflict.
uh/kle (dpa, afp, rtr)