IMF: Financial markets seem 'broadly complacent' to global risks

In its latest World Economic Outlook Update, released this Monday, the International Monetary Fund (IMF) maintained it’s 2018 and 2019 global growth forecast at 3.9%, same as April, but sees risks shifting further to the downside due to an increased likelihood of escalating and sustained trade conflicts.

Key points:

   •  If tariff threats are realized, global growth could be 0.5% below current projections.
   •  US exports are especially vulnerable to retaliatory tariffs.
   •  US growth for 2018 unchanged at 2.9%.
   •  China growth for 2018 unchanged at 6.6%.
   •  Growth forecasts slightly lowered for Euro-zone, Britain, Japan, Brazil and India.
   •  Euro-zone 2018 growth estimate lowered to 2.2% from 2.4%.
   •  Higher forecasts for Middle-East and Pakistan were largely on the back of higher oil prices.
   •  Financial markets seem 'broadly complacent' to global risks.