The International Monetary Fund has cut its world economic growth forecasts for this year and the next, citing trade tensions and risks surrounding Brexit.<br />For more on this and other news around the world we turn to our Ro Aram…<br />Aram… another grim outlook from the IMF.<br /><br />That's right Mark… The IMF predicts the global economy to grow at 3.5 percent in 2019 and 3.6 percent in 2020.<br />It is the second downgrade in three months by the global lender<br />The previous forecast for this year was 3.7 percent. <br />The IMF's latest report cited the unresolved trade war between the United States and China, and the possibility of Britain exiting the European Union without a deal.<br />It also attributed the grim outlook to slowing economic growth in Europe, especially Germany and Italy. <br />At the World Economic Forum in Davos, IMF chief Christine Lagarde allayed fears of a global recession, but noted policymakers had to do more to slow the downturn. <br /><br />"Does that mean that a global recession is around the corner? No. But the risk of a sharper decline in global growth has certainly increased. Add to this the uncertainty, the geopolitical worries and disappointing long-term growth prospect and you have an economic picture with a pretty clear message. And the message is the following for policymakers: address remaining vulnerabilities and be ready if a serious slowdown were to materialise."<br /><br />The IMF, however, maintained its U.S. growth projections of 2.5 percent this year and 1.8 percent next year, pointing to continued strength in domestic demand.<br />It also kept its China growth forecast for this year and next at 6.2 percent, but said economic activity could miss expectations if trade tensions with the U.S. persist.<br />However, Monday's IMF report came just hours after data showed China's growth last year dropped to its lowest in nearly three decades. <br />
