IMF Cuts Global Growth Outlook: 5 ETF Areas To Bet On
Zacks Investment Research | Jan 20, 2020 10:05PM ET
Even as the global economy is showing signs of improvement, the International Monetary Fund (IMF) slashed its global growth forecast for this year and the next by 0.1 and 0.2 percentage points, respectively. It warned that the outlook remains sluggish and there are no clear signs of a turning point.
The IMF now projects global growth to expand 3.3% in 2020 and 3.4% in 2021. The group is now less optimistic about economic recovery than it was few months ago, citing weaknesses in emerging markets, such as India, and growing social unrest around the world. The group is cautious about further trade tensions, as new trade worries could emerge between the United States and the European Union, and the U.S.-China spat could return. Meanwhile, the slowdown in India was sharper than expected amid stress in the nonbank financial sector and a decline in credit growth.
However, the new projections represent an improvement from 2.9% growth projected for 2019. The market sentiment has jumped on an initial trade deal that is expected to improve global manufacturing and trade. Easing of Brexit uncertainty also added to the momentum. Further, global monetary easing policies have been reviving growth in the economies. With all these developments, IMF said global growth may be stabilizing, though at subdued levels (read: Zacks Investment Research
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