The International Monetary Fund has released its latest World Economic Outlook and cut global growth. Global economic growth is forecast at 3% rate this year, the slowest pace since the 2008 financial crisis.

The IMF has become more pessimistic about the global economy due to the higher import tariffs which are impacting manufacturing activity and international trade.

See Also: New IMF Head: Recession Could Be On The Way

“With a synchronized slowdown and uncertain recovery, the global outlook remains precarious," said Gita Gopinath, the fund’s chief economist. "At 3% growth, there is no room for policy mistakes and an urgent need for policymakers to cooperatively deescalate trade and geopolitical tensions.”

The IMF says growth is projected to pick up to 3.4% in 2020 reflecting primarily a projected improvement in economic performance in a number of emerging markets in Latin America, the Middle East and developing Europe that are under macroeconomic strain.

The uncertainty about prospects for several of these countries, a projected slowdown in China and the U.S. and prominent downside risks, will mean a much more subdued pace of global activity could well materialize.

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