International Monetary Fund foresees global slowdown as US-China trade spat drags on

Stocks are falling after China revealed worst growth since the financial crisis

The International Monetary Fund has said it expects a global economic slowdown to come sooner than expected.

In addition to global trade tensions, the report mentions a more substantial slowdown in China and a no-deal Brexit as possible triggers for a future deterioration in financial markets.

The IMF is predicting Britain will outpace Germany this year, with the economic outlook for the United Kingdom remaining untouched at 1.5 percent growth in its latest forecast.

Riyadh has posted an accumulated budget shortfall of $313 billion over the past five years and projects a $32 billion deficit for 2019.

The Dow Jones Industrial Average fell 301.87 points, or 1.22 percent, to 24,404.48, the S&P 500 lost 37.81 points, or 1.42 percent, to 2,632.9 and the Nasdaq Composite dropped 136.87 points, or 1.91 percent, to 7,020.36.

Pessimism about global growth drove down world shares and commodity markets on Tuesday and left investors seeking refuge in the dollar, government bonds and gold.

The global lender on Monday unveiled a gloomy worldwide economic outlook, as it warned of risk factors ranging from the US-China trade war to Brexit.

Trade tensions and tightening financial conditions in the United States and other major economies are the biggest short-term factors in the downward revisions.

Washington and Beijing declared a 90-day truce on December 1, but the risk remains that tensions will flare up again in the Spring and "casts a shadow over global economic prospects".




Most analysts include in China's tally of U.S. Treasuries much of the amount that's held in the accounts of Belgium, given they say it is home to Chinese custodial accounts.

Hours after the International Monetary Fund cut its forecasts for the world economy this year and next, PricewaterhouseCoopers LLP released a survey showing 30 per cent of business leaders expect the expansion to weaken, about six times the number of a year ago.

So far, China´s fiscal stimulus has cushioned the impact of the trade disputes.

"China negotiations perhaps contributing to less optimism surrounding the talks and then you have the ongoing US (government) shutdown, which is not helpful for sentiment either", said Eric Viloria, FX strategist at Credit Agricole in NY.

According to the report, the main shared policy priority is for countries to resolve cooperatively and quickly their trade disagreements and the resulting policy uncertainty, rather than raising harmful barriers further and destabilising an already slowing global economy.

Growth in emerging-market countries is forecast to slow to 4.5 percent from 4.6 percent in 2018.

For Canada, the IMF's estimate for growth in 2019 was 1.9 per cent, down from a forecast in October for growth of 2.0 per cent.

The economies of both Turkey and Argentina are predicted to contract, as is Venezuela's, but it is likely to be even more severe in that case than previously expected.

Related news:

Hot News

isis-killer-beheading-video-story-top Afghan officials: Death toll rises to 45 in Taliban attack
Jan 23, 2019 - 11:39
The Taliban view the Afghan government as a US puppet and have long insisted they will only negotiate directly with Washington. The blast shattered glass inside his house, he said, adding that some of his family members had been injured.

isis-killer-beheading-video-story-top US Highlights Progress in N. Korean Denuclearization
Jan 23, 2019 - 11:13
At a conference of US diplomats at the State Department on Wednesday, Vice President Mike Pence acknowledged the lack of progress. Experts noted that these steps would make it easier for the U.S.to ease some of its sanctions placed on North Korea.

isis-killer-beheading-video-story-top China: Better December growth despite a slower Q4 - Standard Chartered
Jan 23, 2019 - 10:11
China added almost a third of the approximately $23 ten added to global GDP in the 10 years up to 2017. It's worth remembering that although China's growth has slowed, the economy is still growing.

isis-killer-beheading-video-story-top Snow falling in parts of the Midwest
Jan 23, 2019 - 09:57
Bitter cold air also arrives Sunday and sticks around into early next week with subzero wind chills, according to the NWS. A flash freeze is possible Sunday afternoon with temperatures expected to plummet as Arctic air pours into the region.

isis-killer-beheading-video-story-top Serena consoles Dayana Yastremska after demolition
Jan 23, 2019 - 09:53
She's a very tough opponent every time . "As she was walking towards the net, I could tell she was quite upset", Williams said. Younger players facing an idol like Serena Williams or Maria Sharapova on a grand stage may feel it is a dream come true.

isis-killer-beheading-video-story-top Met Eireann issue Status Yellow - Snow-Ice warning for entire country
Jan 22, 2019 - 11:02
Snow will fall mainly on high ground and it will feel chilly thanks to a brisk breeze, with a maximum temperature of 4C. Friday looks set to be fairly decent with only clouds and spells of patchy rain set to arrive.

isis-killer-beheading-video-story-top Rising Manchester United Star Signs New Contract Until 2023
Jan 22, 2019 - 10:29
Former United star Wayne Rooney says he advised Rashford when he returned to worldwide duty against the United States a year ago . In form United , who have won their last seven fixtures, take on bitter foes Arsenal in the FA Cup on Friday.

isis-killer-beheading-video-story-top Oil slips on near-record United States production, demand fears
Jan 22, 2019 - 09:36
After the OPEC + decision on oil production cut was made, Brent crude price dropped by more than $10 to $49.3 per barrel. West Texas Intermediate (WTI) crude futures were at $53.70 per barrel, down 0.1 percent, or 4 cents.

isis-killer-beheading-video-story-top New video raises questions about confrontation between students, Native Americans
Jan 22, 2019 - 09:26
Then, he said , the Native American protesters approached the students, including Mr Phillips, who was playing his drum. In a statement , high school officials say the matter is under investigation and that they are considering expulsion.

isis-killer-beheading-video-story-top Pro-Israel Democrat Kamala Harris announces 2020 presidential bid
Jan 22, 2019 - 08:47
She is the daughter of immigrants from Jamaica and India and has pushed back against critics of "identity politics". But our strength is that we fight to reach those ideals [.] So today, the day we celebrate Dr.

isis-killer-beheading-video-story-top Iran’s American-born journalist detained by Federal Bureau of Investigation to appear in U.S. court
Jan 21, 2019 - 01:17
He said that neither his mother nor any of his family had testified and that "we don't anticipate her getting out today". But the exact reasons for her detainment remain unclear and it has not been confirmed by authorities.

isis-killer-beheading-video-story-top Trump Fires Back After Pelosi Rejects Border Wall Compromise Offer
Jan 21, 2019 - 00:44
DACA and TPS were programs previously targeted by the Trump administration, despite bipartisan criticism. But Democrats appear ready to reject the deal, as House Speaker Nancy Pelosi called it a "non-starter ".

isis-killer-beheading-video-story-top Nigeria to experience total lunar eclipse tomorrow
Jan 21, 2019 - 00:27
The lunar eclipse , which will take place between 3am and 6am, will also turn the moon a shade of red, hence the name blood moon . The lunar eclipse will be visible from cities, as long as the weather conditions are right and there aren't too many clouds.

isis-killer-beheading-video-story-top Microsoft to officially kill Windows phones
Jan 20, 2019 - 18:00
It was at this time that the company released its most recent update for Windows Mobile , which was released in October 2017. Microsoft is planning to put its future mobile app development efforts behind the iOS and Android platforms , going forward.

isis-killer-beheading-video-story-top Australian Open 2019: Roger Federer knocked out by Greek wunderkind Stefanos Tsitsipas
Jan 20, 2019 - 16:57
On this cool evening, Tsitsipas won the point on 48 of 68 trips to the net, while Federer went 50 for 66. I also didn't break him at the Hopman Cup, so clearly there's something wrong.