8 Apr 2014
IMF cuts global growth forecast, hikes EU outlook
FXStreet (Łódź) - According to the International Monetary Fund's latest World Economic Outlook published on Tuesday, we should see global growth of 3.6% this year, compared to the January forecast of 3.7%. The organization pointed to the slowdown in economic recovery in such emerging markets as Russia or Brazil as the reasons for the reduction.
The global growth estimate in 2015 was also trimmed, from 3.85 to 3.7%. Russia's 2014 forecast was cut by 0.6 percentage point to 1.6% and the 2015 forecast by 0.2 to 2.5%. The outlook for Brazil was lowered to from 2.5% to 2% for this year and from 3.1% to 2.9% the next.
Estimates for US growth were kept at 2.7% in 2014 and at 3% in 2015 with the IMF suggesting that the country
IMF chief economist Olivier Blanchard said in a video attached to the report that “The U.S. recovery is the strongest among advanced economies and therefore in a way it’s pulling the world.”
Meanwhile, the 2014 projection for the EU was lifted from 1% to 1.2%, but the IMF warned against the negative implications of prolonged low inflation in the area and once again urged the ECB to use unconventional measures to counter it.
The global growth estimate in 2015 was also trimmed, from 3.85 to 3.7%. Russia's 2014 forecast was cut by 0.6 percentage point to 1.6% and the 2015 forecast by 0.2 to 2.5%. The outlook for Brazil was lowered to from 2.5% to 2% for this year and from 3.1% to 2.9% the next.
Estimates for US growth were kept at 2.7% in 2014 and at 3% in 2015 with the IMF suggesting that the country
IMF chief economist Olivier Blanchard said in a video attached to the report that “The U.S. recovery is the strongest among advanced economies and therefore in a way it’s pulling the world.”
Meanwhile, the 2014 projection for the EU was lifted from 1% to 1.2%, but the IMF warned against the negative implications of prolonged low inflation in the area and once again urged the ECB to use unconventional measures to counter it.