The International Monetary Fund has worsened growth forecasts for the euro area economy

IMF: The situation in the global economy has slightly deteriorated

According to the International Monetary Fund (IMF), the situation of the global economy has slightly deteriorated. The reason is the political uncertainty. Growth in major countries has slowed, for example, in the United Kingdom, which is polluted by bryxite, in Japan or in some euro-zone countries, said Maury Obstfeld, chief economist of the IMF, in introducing an updated report on the global economic outlook. In the United States, the weakest expansion is expected in the long run, with a lower expansion after the stimulus measures of the administration Donald Trump

The IMF continues to anticipate a rise of 3.9 % of the world economy this year. However, the outlook for individual economies has changed. The Fund moderated the industrialized countries' expansion forecast this year by 0.1 percentage point to 2.4%. In 2019, it is still expecting an increase of 2.2%. Emerging economies are expected to grow by 4.9% in 2018 and 5.1% in 2019.

The IMF has kept US forecasts unchanged. The gross domestic product (GDP) of the United States is expected to increase by 2.9% and 2.7% respectively. By contrast, euro area forecasts fell by 0.2 and 0.1 percentage points respectively to 2.2% and 1.9% next year

Japan's GDP is expected to increase by 1 % (-0.2 points) and 0.9% respectively. The British are expected to increase by 1.4% (-0.2 points) and 1.5%, respectively. According to the IMF, the Chinese economy will grow respectively 6.6% and 6.4% and Russian 1.7% and 1.5% respectively.

The IMF's baseline scenario provides for a gradual tightening of financial conditions, but remains positive. The normalization of monetary policy in developed economies will continue and be downgraded. Growth in domestic demand, which is an important factor in the recovery of the global economy, will continue to be rapid.

Under the baseline scenario, the direct negative effects of recently announced and expected trade measures are limited and have up to now affected world trade. The IMF also relies on their only moderate impact on the market's mood, although the escalation of business conflicts remains a significant risk that can cause a slowing of economic growth