Brussels, Oct 15 (AFP/APP): The IMF slashed its growth estimates for the eurozone on Tuesday, which was dragged lower by export-powerhouse Germany, Europe’s biggest economy and a casualty of the global trade war.
Along with emerging economies, the IMF said the eurozone was a key contributor to the cooling global economy — with matters possibly to get worse.
Britain’s painful divorce from the EU was also a destabilising factor, the IMF said, with non-euro United Kingdom also stuck in a low-growth gear, though no different than continental Europe.
“Downside risks to the outlook are elevated,” said Gita Gopinath, the IMF’s chief economist.
“Trade barriers and heightened geopolitical tensions, including Brexit-related risks, could further disrupt supply chains and hamper confidence, investment, and growth,” she said.
The IMF said the eurozone would this year reach 1.2 percent, which was 0.1 points lower from its July estimate.
The growth estimate in 2020 was also slashed to 1.4 percent, down 0.2 points from the July forecast.