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Aruba, October 9, 2018 - The good times, such as they were, for the world’s richest economies are over, the International Monetary Fund said Monday.

The IMF cut its growth forecast for the global economy in 2018 and 2019 to 3.7% — 0.2% below its prior estimate for both years. That reflects weaker growth in advanced economies, rising trade tensions and higher oil prices.
Recent data show weakening in trade, manufacturing and investment, said IMF chief economist Maurice Obstfeld. Global growth appears to have plateaued.
The Trump tax cuts will help keep the U.S. economy buoyant until 2020 but when this stimulus has run its course and as growth in China continues to slow, “global growth is set to moderate,” the IMF said.
The IMF predicted the Federal Reserve will hike rates in December and four times next year to about a 3.5% rate by the end of 2019.
The agency said its preferred inflation measure, the core personal-consumption expenditure price index, is expected to rise to 2.3% in 2019 and then gradually decline to 2% thereafter.
The IMF lowered its 2019 growth projection for China to 6.2% from 6.4% given the latest round of U.S. tariffs on Chinese imports.