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!

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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