IMF cuts China’s 2019 growth forecast trade tension escalates

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BEIJING: The International Monetary Fund (IMF) on Wednesday cut its 2019 economic growth forecast for China to 6.2 percent on heightened uncertainty around trade frictions, saying that more monetary policy easing would be warranted if the Sino-US trade war escalates.
The downgrade came just two months after the IMF raised its China growth forecast to 6.3 percent from 6.2 percent, underlining the expected drag on the world’s second-biggest economy from higher US tariffs on billions of dollars of Chinese goods.
“Growth is expected to moderate to 6.2 percent and 6.0 percent in 2019 and 2020, respectively,” said the IMF’s Deputy Managing Director David Lipton in a statement. “The near-term outlook remains particularly uncertain given the potential for further escalation of trade tensions.”

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