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Gita Gopinath, the IMF's chief economist, and Gian Maria Milesi-Ferretti, the IMF's research deputy director, take questions from the media. Photo: Olivier Douilery/AFP/Getty Images

The International Monetary Fund is now predicting global economic growth will slow to its weakest level since the 2008 financial crisis in its third revision of its 2019 forecast.

The big picture: A sharper-than-expected slowdown in international trade has affected manufacturing and investments, according to the organization's World Economic Outlook.

  • IMF chief economist Gita Gopinath said the organization estimates that trade tensions between the U.S. and China will cumulatively reduce the level of global GDP by 0.8% by 2020.
  • Conversely, if all tariffs put in place in 2018 and 2019 were removed, it would boost global GDP by 0.8% — bringing expectations for growth to 4.2%.

By the numbers: The IMF lowered its forecast for growth from the 3.2% it predicted in July to 3%.

  • The U.S. forecast was cut from 2.6% to 2.4%.
  • China's forecast saw a downward revision from 6.2% to 6.1%.
  • The Eurozone area is expected to see 1.2% growth, down from 1.3%.

Our thought bubble, via Axios' Courtenay Brown: The IMF says global trade tensions, particularly the U.S.-China trade war, is dragging down growth. That leaves a revival of the global economy in the hands of politicians, not central bankers whose tools may not be enough to stave off a trade war-prompted slowdown.

Go deeper: A synchronized global slowdown

Go deeper

6 hours ago - Politics & Policy

Rahm Emanuel floated for Transportation secretary

Rahm Emanuel. Photo: Joshua Lott for The Washington Post via Getty Images

President-elect Biden is strongly considering Rahm Emanuel to run the Department of Transportation, weighing the former Chicago mayor’s experience on infrastructure spending against concerns from progressives over his policing record.

Why it matters: The DOT could effectively become the new Commerce Department, as infrastructure spending, smart cities construction and the rollout of drone-delivery programs take on increasing economic weight.

6 hours ago - Politics & Policy

Biden turns to experienced hands for White House economic team

Illustration: Sarah Grillo/Axios

Joe Biden plans to announce Cecilia Rouse and Brian Deese as part of his economic team and Neera Tanden to head the Office of Management and Budget, sources tell Axios.

Why it matters: These are experienced hands. Unveiling a diverse group of advisers also may draw attention away from a selection of Deese to run the National Economic Council. Some progressives have criticized his work at BlackRock, the world's largest asset management firm.

Biden taps former Obama communications director for press secretary

Photo: Mark Makela/Getty Images

Jen Psaki, who previously served as Obama's communications director, will serve as President-elect Joe Biden's press secretary, the transition team announced Sunday.

The big picture: All of the top aides in Biden's communication staff will be women, per the Washington Post, which first reported Psaki's appointment.