The International Monetary Fund downgraded its outlook for the global economy, citing growing tensions over trade and rising interest rates. The IMF said that the world economy will grow 3.7 percent this year, the same as last year but down from the 3.9 percent it had forecasted. It downgraded its outlook for the countries that use the Euro and Eastern Europe, as well as Latin America, the Middle East and Sub-Saharan Africa.
The report comes before the Oct. 12 meetings in Bali, Indonesia, of the IMF and the World Bank. The IMF projects the U.S. economy to grow 2.9 percent this year, the fastest rate since 2005 and unchanged from the July forecast. But it predicts that U.S. growth will slow to 2.5 percent next year as the effect of recent tax cuts wears off and as the effects of a trade war with China take a toll.