The International monetary Fund (IMF) expects the “weakening global growth”: in the face of unresolved trade conflicts and a threat of Unger Brexits apply, the Fund has revised its growth forecast down again.

in 2019, would increase global economic output by only 3.5 percent, stated in the update of the world economic report the IMF, which was presented at the start of the annual meeting of the world economic forum in Davos. Around 3,000 participants from the political and economic elite will meet Tuesday to discuss challenges and developments in the global economy.

For the German economy has lowered the forecast for the current year, from 1.9 percent to 1.3 percent, while for 2020 to 1.6 percent is expected. Already in October, the IMF had revised its growth forecast for the economy of the Federal Republic of Germany to the bottom.

Germany pollute worse than the United States

“production difficulties in the auto industry and a decline in external demand, growth in 2019,” it said. The impasse with the EU would add the UK and a household outlet wrong location in Italy, which could threaten the economy in Europe.

“remains An escalation of trade conflicts already in the forecast considered one of the major sources of Risk to the Outlook,” writes the IMF. But also in the Eurozone, the mood will be worse. In Germany the discussion about diesel driving bans have weakened the economic climate.

For the United States are forecast to 2019 further 2.5 per cent growth, while it will be 2020 by only 1.8 percent. “The Expansion in the US continues, but the forecast assumes a slowdown after the expiry of the fiscal incentives,” said the Fund. 2018, the world’s largest economy, is likely to have increased recently due to the impetus provided by tax reform, by 2.9 percent. One of the dangers for the American economy, the IMF has a prolonged budgetary dispute, by the hundreds of thousands of state money staff currently receive.

ships in the port of Hamburg (archive)

For China, the IMF forecasts for 2019 and 2020, an increase of 6.2 percent. 2018, the growth was down to 6.6 percent, the lowest since almost three decades. “China’s slowdown could be more pronounced than expected, especially if the trade tensions persist.” The United States and China have covered in the past year, each other with punitive tariffs and are looking for a way out of the conflict.

a plea for free trade and cooperation

The IMF called for international cooperation. The scope of countries for counter-measures in the event of a significant global economic downturn was lower than before the financial crisis of 2008. “Multilateral cooperation is therefore more important.”

“The main policy priority for all countries is to solve their trade disputes, and the resulting political uncertainty, together and quickly, instead of harmful barriers, pull up and destabilize an already weakening world economy”, – stated in the report of the IMF. Among other things, the IMF called on in the face of a global record high debt, and rising interest rates also increase the financial buffer.

apr/dpa/Reuters