IMF lowers global growth outlook for 2019 and 2020

The International Monetary Fund warned that global economic growth outlook remained sluggish, amid the lack of any signs on improvement yet, despite the end of one of the negative factors in the past year, the trade war.

The IMF report comes after the US and China last week signed the phase-one of the trade deal and launched the talks for the phase-two, however, there are still major hinders in relations between the two countries.

The institution estimated last October that the global economy would grow by 3% in 2019 and by 3.4% in 2020, but it cut its forecasts to 2.9% in 2019 and 3.3% in 2020, while it estimated a growth by 3.5% in 2021 .

The Managing Director of the International Monetary Fund, Kristalina Georgieva, stated that chances for the global economy to into a great depression still exist, due to the gap between inequality and financial stability in markets.