The International Monetary Fund (IMF) has further reduced its growth forecasts for the global economy, despite the reduced trade tensions between the United States and China and progress in the Brexit process.
According to the fund economists, the picture has deteriorated sharply, especially in India.
That large emerging economy has performed a lot worse last year than the IMF expected. India is struggling with weaker domestic demand and reluctance among companies to make investments.
That is why the growth there this year and next year will probably turn out to be about a percentage point lower than forecast in October.
For the global economy as a whole, the IMF is expecting 3.3 percent growth this year, 0.1 percentage point lower than previously estimated.
This is slightly better than last year when the economy improved by 2.9 percent. And next year, global growth is likely to pick up to 3.4 percent. But here too there are setbacks.
For 2019 and 2021, the IMF has revised its forecasts downwards by 0.1 and 0.2 percentage points, after several adjustments last year.