Weaker Global Growth Forecast Leaves Mixed Clues for Travel Industry
Skift Take
Travel executives, take note. Global growth is more subdued than some of you may have expected. But many travel companies will still enjoy profitable growth this year.
A global economic forecast released Tuesday by the International Monetary Fund (IMF) may give pause to some travel executives. Short-term drivers for growth are modestly less robust than expected at the start of 2019.
The IMF predicted that global growth would slow to 3.2 percent this year — the weakest pace in a decade.
The baffling aspect of the IMF's updated forecast is that travel industry profits are still pretty robust.
In the U.S., Delta Air Lines reported double-digit percentage profit growth on a revenue gain of 8 percent in the second quarter — a company record for second-quarter revenue performance.
The IMF update also reflected only a modest change to its global growth forecast, down 0.3 percent
