The International Monetary Fund (IMF) has said that although a global economic slowdown is easing, recovery will be sluggish moving into 2020.

In the latest update to its World Economic Outlook, released Monday, the IMF lowered its global growth estimate for 2020 to 3.3%, 0.1% lower than the previous report released in October.

Nevertheless, the IMF numbers for 2020 indicate a modest increase in growth compared to 2019, which saw the global economy grow by 2.9%

The forecast comes a day before political and corporate leaders gather for the annual World Economic Forum in Davos, Switzerland.

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Uncertainty the 'new normal'

Presenting the revised numbers in Davos, IMF managing director Kristalina Georgieva said data suggests positive trends in international trade and industrial output.

"After a synchronized slowdown in 2019, we expect a moderate pickup in global growth this year and next," Georgieva told a news conference.

However, the IMF chief warned that the global economic growth in 2020 is still vulnerable to factors like political protests in numerous countries, the recent tensions between the US and Iran and the ongoing trade war between Washington and Beijing.

"We are all adjusting to live with the new normal of higher uncertainty," she said. "We are already seeing some tentative signs of stabilization but we have not reached a turning point yet."

Climate activists march to World Economic Forum in Davos Big flack: McDonald's a target of the activists' criticism Some of the protesters dressed as Ronald McDonald, the character that represents the world renowned fast-food chain. McDonald's has borne the brunt of severe criticism due to being viewed as the epicenter of mass produced food and is one of the largest buyers of beef in the world, an industry that has been targeted by climate activists in the past.

Climate activists march to World Economic Forum in Davos Trump accusations Donald Trump did not escape the ire of the activists as they began their march to the annual World Economic Forum in Davos. The 2020 event will convene nearly 3,000 participants from over 100 countries, including 53 heads of state, among them the US President and German Chancellor Angela Merkel. The protesters are angry that these global figures are not doing enough to combat global warming.

Climate activists march to World Economic Forum in Davos Taking the lead A man holds a placard suggesting the World Economic Forum needs to be led, and not be the leader, as he takes part in a gathering called by climate activists prior to the start of a march to Davos, where the financial meeting begins on January 22. The hike began in Landquart, in eastern Switzerland and will arrive at the ski resort three days later.

Climate activists march to World Economic Forum in Davos Eco responsibility People hold placards, many of which have warnings of the ecological repercussions of the actions of humans, as they participate in a gathering called by climate activists prior to the start of a march to Davos. A recent study reported that the world's oceans are warming at an alarming rate, which will most likely contribute to more land crises such as the bushfires currently devastating Australia.

Climate activists march to World Economic Forum in Davos 'Strike for the climate' A woman wears a hat with a badge reading "strike for the climate" as the crowds gathered at the beginning of the hike. The phrase has become synonymous with Greta Thunberg and her climate change movement that began 18 months ago. Author: John Silk



India slow, US and China 'unresolved'

The IMF said its projections depend on "avoiding further escalation" in an ongoing "unresolved" economic dispute between the US and China.

President Donald Trump signed a deal with China last week that eases tension in the short term but leaves tariffs in place on two-thirds of Chinese goods imported to the US. "Trade truce is not the same as trade peace," Georgieva Friday, commenting on the deal.

Read more: Could the trade war future mean choosing China or the US?

"Policy missteps at this stage would further enfeeble an already weak global economy," the IMF said in the quarterly report.

A projected slowdown in India is also creating a global drag on growth, and the IMF said the Indian slowdown "accounts for the lion's share of the downward revisions."

Georgieva said India struggles with declining consumption and investments, budget deficits and delays in making structural reforms.

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wmr/cmk (AFP, dpa)

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