International Banking Leaders Warn of Weakening Global Economy
October 15, 2019
Leaders from both the International Monetary Fund and World Bank have issued warnings about the deteriorating growth prospects of the world economy. The IMF cut its global growth projections for the third time this year. It is now projecting that growth in 2019 will slow to 3 percent, the lowest level since the 2008 financial crisis.
The head of the IMF recently declared that the global economy was in a “synchronized slowdown.” The IMF attributes much of this slowdown to global trade tensions, adding that growth prospects could fall even further if the trade war escalates or becomes prolonged. The organization says that by 2020, the addition of tariffs will have reduced global economic output by 0.8 percent, which translates to $700 billion.