(Reuters file)
(Reuters file)

IMF cuts China's 2019 economic growth forecast to 6.2% from 6.3%

  • The near-term outlook remains particularly uncertain given the potential for further escalation of trade tensions: IMF
  • More monetary policy easing likely if the Sino-US trade war escalates

Beijing: The International Monetary Fund (IMF) on Wednesday cut its 2019 economic growth forecast for China to 6.2% on heightened uncertainty around trade frictions, saying that more monetary policy easing would be warranted if the Sino-US trade war escalates.

The downgrade came just two months after the IMF raised its China growth forecast to 6.3% from 6.2%, underlining the expected drag on the world's second-biggest economy from higher US tariffs on billions of dollars of Chinese goods.

"Growth is expected to moderate to 6.2% and 6.0% in 2019 and 2020, respectively," said the IMF's Deputy Managing Director David Lipton in a statement. "The near-term outlook remains particularly uncertain given the potential for further escalation of trade tensions."

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed

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