IMF Cuts Global Growth Forecast to 3.3%

By Unknown

Senin, 12 September 2016

IMF Cuts Global Growth Forecast to 3.3%

The IMF cut its forecast for global growth this year, citing a weaker first quarter in the United States and warning that the turmoil in financial markets from China to Greece scrambles prospects.

the world economy will grow 3.3 percent in 2015, less than 3.5 percent pace expected in April, slower than the growth of 3.4 percent last year the International monetary Fund said in revisions to its World Economic Outlook released Thursday in Washington. The fund has left its growth forecast for next year unchanged at 3.8 percent.

While the IMF left its 2015 forecast for China and the euro zone unchanged from April, it distinguished the two economies as sources of potential risk areas. Chinese stocks have fallen in recent weeks, and Greece is struggling to reach agreement with the European creditors to remain in the eurozone.

"Disruptive changes in asset prices and a further increase in financial market volatility remains a significant risk," the fund said in the report.

Much of the overall deterioration was driven by the US, where the fund now sees growing 2.5 percent this year, compared to 3.1 percent in April. The IMF this week reiterated its recommendation that the Federal Reserve to hold off raising interest rates until the first half of next year, when it is expected that wages and price inflation to pick up .

via Bloomberg

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