The International Monetary Fund said Monday it was "imperative" to resolve the uncertainty surrounding how Britain will leave the European Union, which it said was posing a threat to the British and global economy.
Major Gulf oil exporters, including Saudi Arabia, have posted budget deficits since the crash of the global oil market in 2014. "Persistent trade tensions, high global debt levels and a contraction in growth in several key economies has changed the global outlook", he will say. Of the nations in the G7, only the United States and Canada are expected to outpace... The United States is expected to see growth drop to 2.5% this year and 1.8% in 2020, China is expected to fall from 6.6% in 2018 to 6.2% in the next two years, while the Euro Area is projected to grow by 1.6% this year and 1.7% in 2020.
Oil prices also fell on further evidence that economic growth in China, the world's second largest crude consumer, eased in 2018.
"With momentum past its peak, (and) risks to global growth skewed to the downside. policies urgently need to focus on preventing additional deceleration", the International Monetary Fund urged.
While the downward revisions were "modest", she said.
The global lender on Monday unveiled a gloomy worldwide economic outlook, as it warned of risk factors ranging from the US-China trade war to Brexit. The pound was up 0.6 percent at $1.2967.
Washington and Beijing declared a 90-day truce on December 1, but the risk remains that tensions will flare up again in the Spring and "casts a shadow over global economic prospects".
All that said, the main global forecast of 3.5% does, nonetheless, still constitute a respectable increase in economic activity. "Uncertainty would continue during the extended negotiations and there is no guarantee that it would last for only a short period of time".
So far, China´s fiscal stimulus has cushioned the impact of the trade disputes.
"As seen in 2015-16, concerns about the health of China's economy can trigger abrupt, wide-reaching sell-offs in financial and commodity markets that place its trading partners, commodity exporters, and other emerging markets under pressure", it said.
"There's so much in the background - trade, government shutdown, earnings season - you're going to have these big swings in the markets based on the latest data", said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. The Christine Lagarde-led body also projected a 2.2 per cent economic growth for Nigeria next year, lowering the initial forecast from 2.5 per cent for 2020.
The Opposition has been targeting the Modi government over reports of growing unemployment in the country that has a massive percentage of youth in its population of 1.2 billion.
The economies of both Turkey and Argentina are predicted to contract, as is Venezuela's, but it is likely to be even more severe in that case than previously expected.