IMF Cuts World Economic Growth Forecasts – Stock Indices Under Pressure!

As per recent news, the International Monetary Fund has cut its global economic growth forecasts for 2018 and 2019, stating that the US-China trade war continued taking a toll and emerging markets were grappling with tighter liquidity and capital outflows.

As per the IMF, most of the US-China tariff war’s impact is likely to be felt next year. Thus, the IMF cut its 2019 US growth forecast to 2.5% from 2.7% previously. On the other hand, China’s 2019 growth forecast is also down to 6.2% from 6.4%.

Thing is, a country’s growth is represented by the corporate sector and a slowdown in forecast draws a bearish sentiment for the corporate sector. As a result, investors are moving their investments into the dollar and selling the stock market indices!