Trade spat behind IMF global GDP downgrade

For the first time in over two years, the International Monetary Fund downgraded the growth projection of the world economy on Tuesday, citing escalating trade tensions as a major drag.

According to the IMF report, the global economy is projected to grow 3.7 percent this year and next, the same as in 2017, but 0.2 percentage point lower than the last estimate, made in July.

This was the first time the IMF downgraded the world economic outlook since July 2016, as "downside risks to global growth have risen in the past six months". Major rising risks threatening growth were trade barriers and financial tensions, as well as capital flight from emerging market economies, the report said.