IMF downgrades outlook for world economy to 3.7 pct. growth

WASHINGTON (AP) — The International Monetary Fund is downgrading its outlook for the world economy, citing rising interest rates and growing tensions over trade.

The IMF says the global economy will grow 3.7 percent this year, the same as in 2017 but down from the 3.9 percent it was forecasting for 2018 in July. It slashed its outlook for the 19 countries that use the euro currency and for Latin America, the Middle East and Sub-Saharan Africa.

The IMF expects the U.S. economy to grow 2.9 percent this year, fastest 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 President Donald Trump’s trade war with China takes a toll.

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