IMF lowers S. Korea’s economic outlook from 2.6% to 2.0%, world outlook also slashed
Arirang News
2019-10-16
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The International Monetary Fund made a fifth-straight cut to its 2019 global growth forecast - to three percent - citing a broad deceleration across the world’s largest economies as trade tensions undermine the expansion.
It's the IMF's lowest projection in almost a decade.
South Korea's growth forecast for this year was also slashed to a lowly two percent from its previous outlook of 2.6 percent.
Lee Min-sun reports. The IMF has downgraded its 2019 global economic growth outlook amid the worsening economic slowdown.
In its World Economic Outlook report released on Tuesday, the IMF forecast the global economy will grow 3-percent this year, down from its previous forecast of 3-point-3-percent that was made in April.
It's the IMF's lowest projection since the 2008 global financial crisis.
The report says the latest adjustments were made due to risk factors such as trade tensions, geopolitical tensions like Brexit and worsening financial sentiment.
The IMF's chief economist called on policymakers to take actions to counter risks to growth and to boost economic activity.
"To rejuvenate growth, policymakers must undo the trade barriers put in place with durable agreements, rein in geopolitical tensions and reduce domestic policy uncertainty. Such actions can help boost confidence and reinvigorate investment manufacturing and global trade."
Global economic growth for next year was also lowered to 3-point-4-percent.
Next year's growth is expected to rise from this year's forecast driven by positive recovery signs from emerging economies like Brazil, Mexico and Russia.
The IMF's economic growth outlook for South Korea in 2019 was also significantly downgraded to 2-percent from the previous 2-point-6-percent.
South Korea was one key Asian economy to face a large downward adjustment due to the ripple effect of China's economic slowdown and Beijing's trade conflict with the U.S.
The IMF also said tougher trade regulations between South Korea and Japan have strengthened uncertainty in trade policy and barriers and warned of negative impacts on both countries and the region's supply chain.
Lee Min-sun, Arirang News.
It's the IMF's lowest projection in almost a decade.
South Korea's growth forecast for this year was also slashed to a lowly two percent from its previous outlook of 2.6 percent.
Lee Min-sun reports. The IMF has downgraded its 2019 global economic growth outlook amid the worsening economic slowdown.
In its World Economic Outlook report released on Tuesday, the IMF forecast the global economy will grow 3-percent this year, down from its previous forecast of 3-point-3-percent that was made in April.
It's the IMF's lowest projection since the 2008 global financial crisis.
The report says the latest adjustments were made due to risk factors such as trade tensions, geopolitical tensions like Brexit and worsening financial sentiment.
The IMF's chief economist called on policymakers to take actions to counter risks to growth and to boost economic activity.
"To rejuvenate growth, policymakers must undo the trade barriers put in place with durable agreements, rein in geopolitical tensions and reduce domestic policy uncertainty. Such actions can help boost confidence and reinvigorate investment manufacturing and global trade."
Global economic growth for next year was also lowered to 3-point-4-percent.
Next year's growth is expected to rise from this year's forecast driven by positive recovery signs from emerging economies like Brazil, Mexico and Russia.
The IMF's economic growth outlook for South Korea in 2019 was also significantly downgraded to 2-percent from the previous 2-point-6-percent.
South Korea was one key Asian economy to face a large downward adjustment due to the ripple effect of China's economic slowdown and Beijing's trade conflict with the U.S.
The IMF also said tougher trade regulations between South Korea and Japan have strengthened uncertainty in trade policy and barriers and warned of negative impacts on both countries and the region's supply chain.
Lee Min-sun, Arirang News.
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