9 Jul 2013
IMF slashes global growth forecasts
FXstreet.com (Barcelona) - According to the International Monetary Fund's updated World Economic Outlook released on Tuesday, global growth will be slower in 2013 than previously estimated. The April forecast pointed to a 3.3% increase, whereas currently it has been cut to 3.1%. In 2014 the global economy should expand by 3.8%, compared with the previous forecast of 4%.
The IMF put the reductions down to “appreciably weaker domestic demand and slower growth in several key emerging market economies, as well as by a more protracted recession in the euro area.”
The US growth forecast was reduced to 1.7% from 1.9% in 2013 and to 2.7% from 3.0% in 2014. The Eurozone is expected to expand by 0.9% versus 1.1% this year. Japan, Canada and the UK found themselves among the few countries upgraded by the IMF.
During the press conference accompanying the release of the report the IMF chief economist Olivier Blanchard stressed that especially the BRIC economies are experiencing a slowdown in economic activity, which weighs on global growth. He also pointed to the still unstable situation in the Eurozone and to the slowdown in Chinese investment as the major risks for the world economy.
Adam Button From ForexLive comments: “The IMF has a fairly good forecasting record and this could weigh on commodity currencies, which are near the highs of the day.”
The IMF put the reductions down to “appreciably weaker domestic demand and slower growth in several key emerging market economies, as well as by a more protracted recession in the euro area.”
The US growth forecast was reduced to 1.7% from 1.9% in 2013 and to 2.7% from 3.0% in 2014. The Eurozone is expected to expand by 0.9% versus 1.1% this year. Japan, Canada and the UK found themselves among the few countries upgraded by the IMF.
During the press conference accompanying the release of the report the IMF chief economist Olivier Blanchard stressed that especially the BRIC economies are experiencing a slowdown in economic activity, which weighs on global growth. He also pointed to the still unstable situation in the Eurozone and to the slowdown in Chinese investment as the major risks for the world economy.
Adam Button From ForexLive comments: “The IMF has a fairly good forecasting record and this could weigh on commodity currencies, which are near the highs of the day.”
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