The agency now predicts that growth will plummet Both forecasts are 0.1 percentage points lower than in April.
"If current tariffs continue to exist and further escalation occurs, including all trade between the US and China, this would be around half a percent lower than last year." the level of global GDP in 2020, "said Gita Gopinath, chief economist of the IMF, told CNN Business" Julia Chatterley. "
The US and China agreed to resume trading talks after a meeting between Pre last month Donald Trump and Xi Jinping, his Chinese counterpart, at the G20 summit.
The IMF also warned of potential US tariffs on auto imports and a disorderly Brexit, of which he said this would reduce confidence, weaken investment, delay global supply chains and slow down global growth significantly. "
Gopinath said a more relaxed central bank policy is not enough would deal with such risks.
"It will not be enough for monetary policy to do so is the only game in town," she said, calling on countries to consider raising government spending to boost long-term growth.
A better point is the US economy. The IMF raised expectations for growth in 2019 from 2.3% to 2.6% in the face of a stronger than expected first quarter.