18:28 29 July 2019
IMF: Brexit and the U.S trade policy threaten global economy
Boris Johnson, the Prime Minister of Great Britain believes that the country will leave the European Union on 31 October, "deal or no deal". The International Monetary Fund (IMF) takes the occasion of Britain’s next prime minister election to warn against the global recession, as reported by the Financial Times.
According to the latest assessment of the IMF, Brexit, along with the American trade policy, constitutes one of the main threats to the global economy. This week’s forecast published in the World Economic Outlook turns out to be more pessimistic than in April. Global growth is expected to slow down to 3.2 percent in 2019 which will become the weakest pace in a decade. In 2020, the number will increase slightly to 3.5 percent.
In the past, the analysts were much more optimistic: trade talks between the United States and China were predicted to incline towards a settlement, and economic stabilization was to be reached in various countries including Turkey and Argentina. However, it did not happen.
