The IMF said Tuesday it now believed China's economy will only grow by four percent this year, well below Beijing's official target as it fights a mounting trade war with the United States that threatens to hammer the global economy.

China and the United States -- the world's two largest economies -- are engaged in a mounting tit-for-tat trade row that has sparked global recession fears and rattled markets.

China faces tariffs of up to 145 percent on many products, with others receiving even higher levies. Beijing has responded with duties of 125 percent on US goods.

Also contributing to downward pressure on growth in the Chinese economy are a persistent crisis in the property sector, local government debt and sluggish consumer spending.

The International Monetary Fund said Tuesday in its latest World Economic Outlook report that recent trends had led it to revise down a projection for global growth this year to 2.8 percent.

That reading represents a slowdown from the estimated 3.3 percent growth recorded last year, and is also half a percentage point lower than a previous IMF forecast in January.

The woes have been severely compounded by a second term for US President Donald Trump,........

© International Business Times