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IMF lowers global growth forecast fourth time in the past year

IMF lowers global growth forecast fourth time in the past year

Finance

The International Monetary Fund (IMF) has once again lowered its global growth forecast for the world economy.

Officials from the fund cited a slow down in China, persistently low oil prices and weak growth in advanced economies.

β€œThe new world economic outlook anticipates a slight acceleration in growth in 2016 relative to 2015 to 3.2 percent rate of growth followed by a further acceleration to 3.5 percent in 2017,” said Maurice Obstfeld, IMF chief economist.

Before the latest downgrade, the IMF had expected global growth of 3.4% this year and 3.6% in 2016.

IMF whose spring meetings along with the Worlds Bank will be held in Washington this week also warned of widespread stagnation risk and said that weaker growth could leave the global economy more vulnerable to shocks such as currency depreciations or worsening geopolitical conflicts.

The fund urged global policy makers attending the meetings to deploy coordinated efforts to boost demand with structural economic reforms, accommodative monetary policy and structural fiscal stimulus where possible.

This is the fourth time that IMF has lowered its global growth projections in the past year.

Reuters