Lower Growth Forecasts to Rising Rates: Risks Aplenty for Markets

Earlier this month, the IMF lowered its global growth forecast for 2018 and 2019 from 3.9% to 3.7%. At the beginning of the year, the IMF had raised its 2018 global economic growth forecast to 3.9% from 3.8%, calling it “the broadest synchronized global growth upsurge since 2010.” Six months down the line, while it maintained the growth forecast, it dropped the term “synchronized.” Now, even the growth forecast has been trimmed due to the trade war scare. Lower global growth isn’t encouraging for markets (QQQ).