10 Jul 2013

IMF cuts global growth forecast

8:17 pm on 10 July 2013

The International Monetary Fund has lowered its forecast for global economic growth this year and in 2014.

The forecast is down by 0.2 percentage points for each year, compared to what it predicted in April. The IMF says the global economy will remain subdued this year, with growth of just 3%.

The BBC reports the downward revision reflects disappointing performance in major emerging economies. Growth forecasts have been cut for China, Brazil, Russia, India and others.

That reflects weaker exports, concerns about financial stability and for some, lower prices for oil and other commodities.

The eurozone is also yet again a factor behind the global economic weakness. The deeper than expected recession in Europe contributed to the cut in the IMF's forecast.