The World Bank made a similar prediction in January, saying growth could start flagging in the next couple of years as major economies such as the United States, China and the European Union begin to cool.
Referring to tariffs on steel and aluminium and a range of Chinese products announced by US President Donald Trumps' administration and China's counter-tariffs on US imports last month, the International Monetary Fund noted that "the first shots in a potential trade war have now been shot".
The IMF official said that these trends are more due to technology change than to trade, and even in countries where trade backlash is not prominent, public skepticism about policymakers' ability to generate robust and inclusive growth has spread.
It also upgraded its forecast for U.S. growth in 2018 to 2.9%, up from 2.7% previously.
However the International Monetary Fund says the stimulus will be "temporary".
The economy would grow by 2.4 percent for the euro area, 1.2 percent for Japan, 6.6 percent for China, and 2.9 percent for the United States, said Africa's economy would grow by 3.4 percent this year with the economies of Nigeria and South Africa growing at 2.1 percent and 1.5 percent respectively. At the same time, the clear slowing of the increase in productivity and the aging population will have a negative impact on the growth rate. Following the next two years, however, the weight of negative processes and factors will rise and be reflected in lower growth.
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"The prospect of trade restrictions and counter-restrictions threatens to undermine confidence and derail global growth prematurely", Obstfeld said at a press conference Tuesday.
US President Donald Trump last month imposed steep tariffs on steel and aluminum imports and threatened to impose more on tens of billions of Chinese goods, prompting Beijing to respond in an escalating series of threats.
The IMF has also strongly criticised the approach of the Trump administration to trade deficits.
Rather than lower the trade deficit, as Trump has called for, the U.S. trade actions could expand it by $150 billion by 2019, he said. The Dow had lost nearly 10 percent of its value by the end of March, down from the record 26,616.71 reached on January 26. But the forecast for 2019 was unchanged at 2.0 percent.
This compares with locations where smartphones are manufactured, such as Korea, where the production chain of smartphone rleated components is estimated to have contributed one-third of real GDP growth in 2017, while in Taiwan, the contribution is as high as 40 per cent.
The UAE is forecasting growth of 3.6 to 3.9 per cent for this year.