IMF downgrades outlook for world economy again
WASHINGTON, United States (AP) — The International Monetary cut its forecast for global and US economic growth in 2016
Citing weakness in the developing world, the IMF says the world economy will grow 3.4 per cent, down from an October forecast of 3.6 per cent. The international lending agency downgraded the outlook for developing economies to 4.3 per cent growth from a forecast of 4.5 per cent in October.
The world economy grew 3.1 per cent and developing economies 4 per cent in 2015. Both figures were the weakest since the recession year 2009. Falling commodity prices have hurt countries that export raw materials.
The IMF trimmed its forecast for US economic growth to 2.6 percent this year from 2.8 per cent, noting the prospect of higher American interest rates. It kept its 2016 forecast for China’s economy unchanged at 6.3 per cent.
