The IMF warned that the global outlook remains sluggish and is without clear signs of a turning point.
As a result, the fund revises global growth forecast for 2019 from 3% to 2.9% and that for 2020 from 3.4% to 3.3%.
The downward revision was mostly due to lower growth in India, according to IMF. For 2021, the organisation has predicted a growth rate of 3.4%.
“The projected recovery for global growth remains uncertain. It continues to rely on recoveries in stressed and underperforming emerging market economies, as growth in advanced economies stabilizes at close to current levels,” said Gita Gopinath, the IMF’s chief economist.
At the same time, the fund said that that some of the biggest economic uncertainties, have dissipated as a result of the phase one trade deal between the US and China and the lower likelihood of a no-deal Brexit.
In addition, the IMF said global growth may be stabilising as central banks’ monetary policies have continued to support growth and buoyant financial conditions.
However, the fund warned that new trade tension could emerge between the US and the EU while the US-China trade tensions could return.