IMF Warns Of “Sudden Repricing” In Asset Prices As It Trims Global Economic Outlook
by Tyler Durden
ZeroHedge.com
Mon, 07/16/2018
The Washington-sponsored IMF is out with its latest set of guesses at global growth, warning that amid rising tensions over international trade, the broad global expansion that began roughly two years ago has plateaued and become less balanced.
The IMF still expects tax cuts to lift U.S. economic growth to 2.9 percent this year, up from 2.3 percent in 2017; but, citing proliferating trade conflicts, IMF chief economist Maury Obstfeld warned that “the risk of worse outcomes has increased” for the world economy.
The IMF reiterated its warning about the damage from a trade war, saying the outlook is “more fragile” and “under threat.”
“If current trade policy threats are realized and business confidence falls as a result, global output could be about 0.5 percent below current projections by 2020,”
It kept its forecast for 2018 global growth unchanged at 3.9 percent for now, but downgraded many major countries.
While the U.S. escaped thanks to a fiscal boost, the IMF cut projections for the euro area, Germany, France and the U.K. after weak — weather-related — first quarters and also lowered its outlook for Japan.
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