According to Reuters, the global economy is slowing its weakest since financial crisis amid continuing trade disputes that have affected business confidence and investment, the International Monetary Fund (IMF) said on Tuesday.
In its Global Economic Prospects report, the IMF cut its forecast for 2019 to 3.0% and for 2020 to 3.4%.
The report warned that the global economy was witnessing a “coordinated slowdown and an uncertain recovery”.
One of the cures the IMF proposes is to boost financial inclusion.
“The global outlook remains unstable,” said IMF chief economist, Gita Gopinath, warning that “there is no room for policy mistakes”.
Over the past year, the IMF has trimmed growth forecasts for 2019 amid worsening trade disputes.
Trade disputes, combined with a slowdown in global car sales, mean that trade growth slowed sharply, falling in the first half of the year to its weakest level since 2012, with an estimated increase of only 1.1% this year after a 3.6% increase in 2018.