The International Monetary Fund lowered its forecast for global economic growth
The International Monetary Fund lowered its forecast for global economic growth
01/20/2015 06:56 GMT
Agencies – International Monetary Fund cut its forecast on Tuesday for global economic growth for 2015 and called on governments and central banks to pursue policies to facilitate monetary and structural reforms to support growth.
The IMF said in its latest World Economic Outlook that global growth is expected to reach 3.5 percent in 2015 and 3.7 percent in 2016, down 0.3 percentage point from the previous two years, both of which forecast issued in October.
Fund advised the advanced economies to maintain accommodative monetary policies in order to avoid increases in real interest rates because of falling oil prices increases the risk of deflation of prices.
Fund if he could not be more cuts in interest rates, it is advisable to pursue accommodative policy “through other means and said.”
The United States was the only bright point in the dark about the major economies Fund report expected to grow with the largest economy in the world by 3.6 percent in 2015, up from 3.1 percent in the previous forecast.
But the IMF predicted further weakness in the euro zone, where Spain were the only countries in the region between the Fund raised its forecast for growth.
The Fund also cut its forecast for emerging economies in general and the oil exporters, Russia, Nigeria and Saudi Arabia in particular.
It also cut its forecast for growth in Brazil and India.
The IMF report said that falling oil prices will give the central banks in emerging economies leeway to delay raising interest rates despite the standard “The scope of macroeconomic policy to support growth remains limited.” Q, Q
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