IMF cuts global growth forecast
The International Monetary Fund lowered its forecasts for global growth over the next two years, warning that weakness in most major economies will trump gains from lower oil prices. Despite the downward adjustment, the world economy is expected to grow more than in 2014.
The International Monetary Fund (IMF) has lowered its global growth forecasts for the next two years. The IMF predicts global growth at 3.5% this year and 3.7% in 2016, down 0.3 percentage points from its October projections. Despite this, the world economy is expected to grow faster than in 2014, when it expanded 3.3%. The US is a bright spot, with an accelerating recovery, while Europe, Japan, and Russia are logging slower growth. China's economic growth slowed to 7.4% last year, its weakest expansion since 1990. The advanced economies are forecast to expand by 2.4% in 2015 and 2016, while growth in developing economies is forecast to slip to 4.3% from 4.4% in 2014 before recovering to 4.7% in 2016. Lower oil prices are raising consumer purchasing power, but also sapping growth prospects for countries in the Middle East, sub-Saharan Africa, and Latin America.
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