IMF Reduces Global Growth Forecast by Nearly 6%

The Chinese economy is no longer carrying the torch of global growth. No other country is stepping up to fill the void left behind by [often forged] China’s GDP stagnation.

As such, the International Monetary Fund was out this morning slashing their global growth forecast from 3.4% to 3.2%, the fourth such cut in the last 12 months.

In its latest World Economic Outlook, the Fund warned of widespread stagnation risk and said weaker growth could leave the global economy more vulnerable to shocks such as currency depreciations or worsening geopolitical conflicts.

The Fund called on global policymakers attending the IMF and World Bank meetings to take coordinated actions to boost demand with structural economic reforms, fiscal stimulus where possible and accommodative monetary policy.

Source: David Lawder, Reuters