The International Monetary Fund (IMF) has predicted that the world economy will grow at its weakest in three years in 2019, cutting its forecast on the global economy.
The IMF has warned countries against fresh trade tensions, like that witnessed between the United States of America and China, saying the effects will be felt across the world.
IMF has downgraded the global growth two times in three months blaming the softening demand across Europe as well as the recent palpitations in financial markets around the world.
The world economy is set to grow at 3.5 percent in 2019, down from 3.7 percent that had been predicted earlier. IMF says that the world economy is growing more slowly than expected and that the risks are continuously rising.
Major economies are set to receive the heat in their growth in 2019, coupled with trade tensions, government policies as well the unpredictable change in commodity prices.
The US government has been on shutdown for four weeks with President Donald Trump saying that the shutdown might go on even for years with analysts saying the impact will be felt beyond the United States.
A report released by Cytonn Investments predicted that sub-Saharan Africa countries will continue to access foreign debts through the issuance of Eurobonds in 2019 in order to enhance their development.
Cytonn says the rise in the Eurobond yield was as a result of aggressive tightening monetary policy regime adopted by the US Federal Reserve, coupled with US-China trade tensions, dampening investor sentiments in emerging markets.
Africa’s economy is set to slow in 2019, with analysts blaming the increased appetite of most African countries to foreign debts, with China playing a major role.