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Global economic growth remains strong

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July 24, 2019: Although International Monetary Fund (IMF) lowered its global growth forecast, a U.S. economist told Xinhua Tuesday he still believed the world has strong economic growth momentum.  

A report released Tuesday by the IMF revised its global growth projections from April, suggesting that poor policy choices by governments across the globe may cause economic slowdown for the next year-and-a-half.

The IMF predicted global economic growth will be 0.1 percentage points lower this year and next year than its previous projection, coming in, respectively, at 3.2 percent and 3.5 percent for 2019 and 2020.

Donald Mazzella, chief operating officer and editorial director of business publisher Information Strategies, Inc. told Xinhua that the “gloomy outlook” by the fund on the global economy was “a little too much” in his view.

“Trade tensions abound but also the pressure to provide for growing masses of upward aspiring consumers will force compromises on both sides,” said Mazzella, adding “the monetary system is still flushing out prior year bad debts, but there is also a significant amount of capital looking for places to invest.”

According to the IMF's nation-by-nation breakdown, U.S. growth is to increase this year from 2.3 percent to 2.6 percent. China's growth is expected to slip slightly from 6.3 percent to 6.2 percent.

Emerging and developing economies are also predicted to grow by 4.1 percent this year — a decrease of 0.3 points from April's forecast — a slower pace of expansion projected for Brazil, India, Mexico and Russia, according to the IMF.

“Multilateral and national policy actions are vital to place global growth on a stronger footing,” the IMF said.

“The pressing needs include reducing trade and technology tensions and expeditiously resolving uncertainty.

Specifically, countries should not use tariffs to target bilateral trade balances or as a substitute for dialogue to pressure others for reforms,” the IMF noted.

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Posted on: 2019-07-24T13:54:00+05:00

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