World economic outlook: April 2019, growth slowdown, precarious recovery

Global economic activity slowed in the second half of last year due to a confluence of factors affecting major economies, including China's growth decline, the euro area economy losing momentum, trade tensions, natural disasters, and financial market sentiment. Conditions have eased in 2019, but they remain slightly more restrictive than in the fall.

Format: Paperback / softback
Length: 214 pages
Publication date: 30 June 2019
Publisher: International Monetary Fund (IMF)

Global economic activity experienced a notable slowdown in the second half of last year, marking a significant shift from the strong growth witnessed in 2017 and early 2018. This decline was influenced by a convergence of factors impacting major economies worldwide. In China, the growth trajectory declined due to a combination of regulatory measures aimed at curbing shadow banking practices and escalating trade tensions with the United States. The euro area economy faced challenges, with consumer and business confidence weakening, car production disruptions in Germany due to new emission standards, investment declines in Italy due to widening sovereign spreads, and a softening in external demand, particularly from emerging Asia. Additionally, natural disasters in Japan further impacted economic activity. Trade tensions continued to exert a negative impact on business confidence, leading to a deterioration in financial market sentiment. This, in turn, resulted in tighter financial conditions for vulnerable emerging markets in the spring of 2018 and later in advanced economies throughout the year, exerting a drag on global demand. However, conditions began to improve in 2019, with the US Federal Reserve signaling a more accommodative monetary policy stance and markets displaying increased optimism regarding a potential US-China trade deal. While these developments have led to a slight easing of restrictions, they remain slightly more stringent compared to the conditions observed in the fall of the previous year.

Weight: 736g
Dimension: 218 x 280 x 13 (mm)
ISBN-13: 9781484397480