IMF Downgrade of U.S. and U.K. Economies Puts Investors on Notice
Hacked: Hacking Finance

Economy

IMF Downgrade of U.S. and U.K. Economies Puts Investors on Notice

Posted on .

IMF Downgrade of U.S. and U.K. Economies Puts Investors on Notice

Introduction

This article was posted on Wednesday, 14:19, UTC.

The International Monetary Fund (IMF) has slashed its growth outlook for the world’s No. 1 and No. 5 economies, citing political pressures and fiscal uncertainty in its evaluation of the next two years.

// -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- //

U.S. Outlook Cut as Fiscal Stimulus Remains Elusive

After a dismal first half of 2017, the U.S. economy is projected to grow just 2.1% in 2017, the IMF said in its widely watched World Economic Outlook. That’s down from the April estimate of 2.3%. The forecast for 2018 was also reduced to 2.1% from 2.5%.

The Washington-based lending institution cited contradicting policies as one of the main reasons for the downgrade. It also looks like President Trump’s fiscal stimulus proposals won’t get off the ground anytime soon.

U.K. Faces Brexit Barrier

The United Kingdom’s path out of the European Union became murkier last month after Prime Minister Theresa May failed to build on her parliamentary majority in a snap election. The result knocked the Conservatives eight seats back of a majority, forcing the party to join forces with Northern Ireland’s Democratic Unionists.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

It’s precisely this uncertainty that triggered a downgrade of the U.K.’s economic fortunes. The economy is now seen growing just 1.7% this year compared to the April forecast of 2%. The Fund maintained its 2018 outlook of 1.5% growth.

Brexit remains a highly contentious subject for the U.K. – one that is unlikely to be resolved anytime soon.

Fund Managers Monitoring Financial Risks

Fund managers have been complaining for months now that U.S. stocks are the most overvalued in the world. According to a monthly survey from Bank of America Merrill Lynch, a net 80% of fund managers are underweight U.S. equities. That’s down only slightly from the 84% who indicated the same in June. This makes the IMF’s latest downgrade of the U.S. economy especially concerning.

// -- Get exclusive consultation for as low as $249 per month on MoneyMakers.com -- //

At the same time, the Fund maintained a generally positive outlook on global growth. It also raised its forecasts for China, Japan and the Eurozone, reflecting a solid first half of the year.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Sam Bourgi

Sam Bourgi

Sam Bourgi is Contributing Writer to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.

There are no comments.

View Comments (0) ...
Navigation
The team:
Dmitriy Lavrov
Analyst
Dmitriy Lavrov is a professional trader, technical analyst and money manager with 10 years of trading experience. He covers Forex, Commodities and Cryptocurrencies. He is among the top 10 most Read More
Jonas Borchgrevink
Founder
Jonas Borchgrevink is the founder of Hacked.com and CryptoCoinsNews.com. He is a serial entrepreneur, trader and investor. He shares his own personal journey on Hacked.com. // -- Discuss and ask Read More
P.H. Madore
ICO Analyst
P. H. Madore lives in Arkansas with his wife and children. He has covered the cryptocurrency beat over the course of hundreds of articles for Hacked’s sister site, CryptoCoinsNews, as Read More
Mate Csar
Analyst
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive Read More
Justin O’Connell
Journalist
Justin O’Connell is a cryptocurrency journalist who works have appeared in the U.S.’s third largest weekly, the San Diego Reader & VICE. // -- Discuss and ask questions in our community Read More
Mati Greenspan
Analyst
Senior Market Analyst at Etoro.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Important: Never invest Read More
Rakesh Upadhyay
Analyst
Rakesh Upadhyay is a Technical Analyst and Portfolio Consultant for The Summit Group. He has more than a decade of experience as a private trader. His philosophy is to use Read More
Pamela Meropiali
Account Manager
Pamela Meropiali is responsible for users on Hacked.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Read More
Joseph Young
Journalist
Joseph Young is a finance and tech journalist & analyst based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering Read More
Bitcoin's volatile ride continued Tuesday, with prices dropping to their…