IMF cuts global growth estimate to 3.3% as world economy loses steam

The global economy is facing a "delicate moment," beset with risks as the recovery loses steam amid trade tensions, Brexit and other factors, the International Monetary Fund warned Tuesday.

The IMF's World Economic Outlook once again downgraded global growth to 3.3 percent for 2019, two tenths lower than the global crisis lender forecast in January and four tenths lower than October.

And while world growth is expected to pick up in the second half of this year and hit 3.6 percent in 2020, many things will have to go right for that to happen, including a resolution of President Donald Trump's trade battle with China.

The quarterly report "projects a slowdown in growth in 2019 for 70 percent of the world economy," IMF chief economist Gita Gopinath said in a statement.

The euro area is likely to slow sharply, particularly in Germany where the GDP forecast was cut by a half point, and Italy which has slowed to a virtual standstill, according to the quarterly report.

And amid the turmoil over its exit from the European Union, the IMF downgraded the outlook for Britain this year and next.

Emerging economic powers China and India continue to show the highest growth rates, 6.3 percent and 7.3 percent, respectively. Beijing has rolled out a series of fiscal stimulus measures to counteract the hit from the US trade war but India's growth was downgraded by two tenths of a point.

And while the recent signs that officials in Washington and Beijing are engineering a trade deal have calmed some of the nerves in financial markets, the solution is by no means certain.

The report cautions that downside risks to the outlook continue to dominate: Trade tensions could flare up again, and there is risk of a "no-deal Brexit withdrawal" or persistent slowing of economic activity.

"This is a delicate moment for the global economy," Gopinath said. "This recovery is precarious and predicated on a rebound in emerging market and developing economies," including Argentina and Turkey.

While a rebound is possible if policymakers avoid all the potential pitfalls, she warned that "If, however, any of the major risks materialize, then the expected recoveries in stressed economies, export-dependent economies, and highly-indebted economies may be derailed."