IMF cuts global growth forecasts as India falters, says bottom may be near

The hindu businessline: The International Monetary Fund (IMF) on Monday trimmed back its 2020 global growth forecasts due to sharper-than-expected slowdowns in India and other emerging markets, but said a US-China trade deal was another sign that trade and manufacturing activity may soon bottom out.

The IMF said global growth would reach 3.3 per cent in 2020, compared to 2.9 per cent in 2019, which was the slowest pace since the financial crisis a decade ago. Estimates for both years were cut by 0.1 percentage point from forecasts made in October.

Growth will improve slightly to 3.4 per cent in 2021, but that estimate, too, was cut by 0.2 percentage point from October, the Washington-based international crisis lender said.

The reductions reflect the IMF's reassessment of economic prospects for a number of major emerging markets, notably India, where domestic demand has slowed more sharply than expected, amid a contraction of credit and stress in the non-bank sector