International Monetary Fund reduced global economy growth estimate first time in more than two years, Bloomberg reports. The reason is in growing trade tension and stress at emerging markets.

Growth this year will be 3,7% compared with last estimate of 3,9% forecasted three months ago.

The fund left US growth forecast for 2018 at 2,9%, however, it reduced next year estimate by 0,2% to 2,5%.

According to IMF, global risks have been grown in last three months amid trade war between the US and China as well as due to faster interest rates hikes that will speed up capital outflows from emerging markets.

Besides, IMF assumes that Turkey has to put all efforts into economy recovery and forecasts deeper recession in Argentina and slower growth in Brazil. China’s estimate was reduced by 0,2% to 6,2%. Euro area will be developing with 2% pace next year, which is 0,2% lower than last estimate. Forecast for Japan is increased by 0,1% to 1,1%.