International Monetary Fund is less optimistic over economic recovery than a few months ago, CNN reported.

The IMF said emerging markets weakness and growing social unrest brings to a lower forecast for economic growth in 2020. Currently, the IMF expects a 3.3% increase in 2020.

According to the IMF, this still means an improvement over 2019, when economic growth was 2.9%.

A monetary stimulus, "intermittent favorable news" about US-China trade talks and a reduction in concern over the complex Brexit have improved global sentiment. However, some confidence may be premature. The IMF also lowered its growth forecast for 2021 by 0.2 percentage points to 3.4%.

"Few signs of turning points are yet visible in global macroeconomic data," it said in its report.

One pressing issue is that emerging economies will not be as stable as expected. The IMF predicts India’s growth at 5.8% in 2020, compared with 4.8% last year, but 1.2 percentage points lower than forecasted in October.

The IMF said domestic demand in India  "has slowed more sharply than expected" due to stress in its financial sector and lower lending growth. It also softened growth expectations in Mexico, Chile and South Africa.

The US economy outlook remains stable. Growth is projected to decline from 2.3% in 2019 to 2% in 2020. This is 0.1 percentage points lower than the IMF forecast in October.