THE International Monetary Fund expects China and India - the world's most populous countries - to play a bigger role driving the global economy, as it downgrades growth forecasts due to an escalating trade war, reports Bloomberg.
The imf cut its global projection for this year to 2.8 per cent in the updated World Economic Outlook, down from the 3.3 per cent it was expecting in January. The Fund's team had to rapidly revise country forecasts due to high levels of uncertainty, after US President Donald Trump announced sweeping worldwide tariffs and then dialled some of them back, at least temporarily.
Compared to the forecasts it made in October, the IMF now expects a bigger share of growth to come from China and India, according to projections published this week based on purchasing power parity. Meanwhile, the expected contribution from the US was revised downward.
China will be the top contributor to global growth over the next five years, with a 23 per cent share - up from 21.7 per cent six months ago - according to Bloomberg calculations based on the IMF numbers.
India is now expected to add more than 15 per cent of additional output through 2030, while the US share drops to 11.3 per cent from a prior estimate of 11.6 per cent.
SeaNews Turkey
The imf cut its global projection for this year to 2.8 per cent in the updated World Economic Outlook, down from the 3.3 per cent it was expecting in January. The Fund's team had to rapidly revise country forecasts due to high levels of uncertainty, after US President Donald Trump announced sweeping worldwide tariffs and then dialled some of them back, at least temporarily.
Compared to the forecasts it made in October, the IMF now expects a bigger share of growth to come from China and India, according to projections published this week based on purchasing power parity. Meanwhile, the expected contribution from the US was revised downward.
China will be the top contributor to global growth over the next five years, with a 23 per cent share - up from 21.7 per cent six months ago - according to Bloomberg calculations based on the IMF numbers.
India is now expected to add more than 15 per cent of additional output through 2030, while the US share drops to 11.3 per cent from a prior estimate of 11.6 per cent.
SeaNews Turkey
