IMF cuts global economic growth forecast this year

The International Monetary Fund (IMF) released a report in Davos on the 20th, which lowered its global economic growth forecast to 3.3% in 2020. After reducing the global economic growth forecast to 3.4% in 2020 in October last year, imf20 lowered the forecast by 0.1 percentage point to 3.3% again in the updated content of the world economic outlook report. The report also cut its economic growth forecast for 2021 by 0.2 percentage points to 3.4%. The report forecasts that the economic growth of developed economies will be stable at 1.6% this year and next, and that of emerging and developing economies will be 4.4% and 4.6% respectively. The report pointed out that manufacturing activities and Global trade bottomed out and rebounded, monetary policy of major economies turned loose, positive news of China US economic and trade negotiations, and weakening concerns about Britain's "no agreement to leave Europe" and other positive phenomena boosted market sentiment. However, the risks of economic downturn are still prominent, such as geopolitical tensions, social unrest, economic and trade frictions and other risks. Taking into account the existing monetary and fiscal space, strengthening multilateral cooperation and implementing a more balanced policy mix at the national level are essential to boost the economy and prevent downside risks, the report suggests. To enhance financial resilience, tap the potential of economic growth and improve inclusiveness are still the primary goals. The IMF usually issues the world economic outlook report in the first half and the second half of each year during the spring meeting and the autumn annual meeting, and updates the two reports in the year and at the beginning of the next year.