The IMF lowered its forecast for global growth for the third time in less than a year
The International Monetary Fund lowered its forecast for global growth for the third time in less than a year
January 19, 2016
International Monetary Fund cut its forecast for global growth for the third time in less than a year on Tuesday, and attributed this to the sharp slowdown in China’s trade and prices of weak commodities that are harmful to Brazil, and markets and other emerging movement.
Fund predicted that the global economy to grow 3.4 percent in 2016 and 3.6 percent in 2017, down 0.2 percentage points for each of the two years, compared with the previous estimate announced in October last year.
The IMF said, that “policy makers examine ways to boost demand in the short term.”
coincides World Economic Outlook, updated with concerns in financial markets about the slowdown China and the decline in oil prices.
The fund kept the former expect to China’s economic growth of 6.3 percent in 2016 and six percent in 2017, which would be a sharp slowdown from the rate in 2015 of 6.9 percent and 2014’s 7.3 percent.
The IMF said that the worsening slowdown in China remains a source of risk for global growth though Imports and exports of Chinese weaker-than-expected burden the emerging markets and exporters of primary commodities.
He said the forecast acceleration of US output dwarfed by the impact of a stronger dollar on manufacturers and prices of low oil that inhibit energy investments.
The Fund now expects growth of 2.6 percent of the US economy in both 2016 and 2017, down 0.2 percentage points for each of the two years, compared with the October forecast.
In Europe, the IMF said, “The decline in oil prices will support private consumption Fund to raise the expectation for growth of the eurozone economy 0.1 percentage points to 1.7 percent in 2016 with the speculation to achieve the same percentage in 2017.
The Fund cut its growth forecast for the Russian economy where speculated Bankmach one percent in 2016 instead of 0.6 percent in October as expectations of lower oil prices lead to a weakening of export income.