20 Jan 2016

IMF cuts global growth forecast

10:12 am on 20 January 2016

The International Monetary Fund (IMF) has downgraded its outlook for global economic growth over the next two years.

It now predicts growth of 3.4 percent this year followed by 3.6 percent in 2017.

The revision is partly a result of weaker performance in emerging economies.

The updated forecasts came as global financial markets have been roiled by worries over China's slowdown and plummeting oil prices.

The IMF maintained its previous China growth forecasts of 6.3 per cent in 2016 and 6.0 per cent in 2017 - which nonetheless represent sharp slowdowns from the previous two years.

But the Fund said a steeper slowing of demand in China remained a risk to global growth.

The IMF said in its report other risks included further dollar appreciation and an escalation of geopolitical tensions.