IMF releases World Economic Outlook for January 2020

Colombo (News 1st): The IMF released its World Economic Outlook for January 2020 yesterday (Jan 20). For 2020 and 2021, the International Monetary Fund trimmed back its global growth forecasts, mostly due to a sharper-than-expected slowdown in India and other emerging markets, even as it said that a U.S.-China trade deal added hopes and that the activity was bottoming out. Managing Director of the IMF Kristalina Georgieva noted;

"After a synchronized slow down in 2019, we expect a moderate pick up in growth this year and next year, we already see some tentative signs of stabilization. Recent data suggest that trade and industrial output are bottoming out. But we have not reached a turning point yet. We are revising slightly downwards. The reality is global growth at present is sluggish."

Global growth appears to have bottomed out but there is no rebound in sight and risks ranging from trade tensions to climate shocks make the outlook uncertain. Chief Economist at the IMF Gita Gopinath noted that there are signs that global growth may be stabilizing, though at subdued levels. She added that they are projecting a modest recovery for growth to increase from 2.9% in 2019 to 3.3% in 2020, and 3.4% in 2021.