The Associated Press WASHINGTON (AP) — The International Monetary Fund is downgrading its outlook for the world economy, citing rising interest rates and growing tensions over trade.
The IMF said Monday that the global economy will grow 3.7 percent this year, the same as in 2017 but down from the 3.9 percent it was forecasting for 2018 in July. It slashed its outlook for the 19 countries that use the euro currency and for Central and Eastern Europe, Latin America, the Middle East and Sub-Saharan Africa.
The report comes on the eve of the Oct. 12-14 meetings in Bali, Indonesia, of the IMF and the World Bank.
The IMF expects the U.S. economy to grow 2.9 percent this year, the fastest pace since 2005 and unchanged from the July forecast. But it predicts that U.S. growth will slow to 2.5 percent next year as the effect of recent tax cuts wears off and as U.S. President Donald Trump’s trade war with China takes a toll.
The outlook for world trade overall also darkened: The fund expects global trade to grow 4.2 percent this year, down from 5.2 percent in 2017 and from the 4.8 percent it expected in July.