Labor urges fiscal stimulus as IMF downgrades Australia's economic growth

The International Monetary Fund tips growth will be 1.7% in 2019 but is expected to recover to 2.3% in 2020

The International Monetary Fund has downgraded Australia's economic growth forecasts by 0.4% to 1.7% in 2019 amid rising geopolitical turmoil, the US-China trade war and stalling economic growth globally.

The world economic outlook forecasts, released on Wednesday, show growth is expected to recover to 2.3% in 2020, providing some support to the Reserve Bank's view when it cut interest rates earlier in October that Australia's economy has reached a "gentle turning point".

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