THE International Monetary Fund on Tuesday cut its forecast for global and US economic growth in 2016.
Citing weakness in the developing world, the IMF said the world economy will grow 3,4%, down from an October forecast of 3,6%. The international lending agency downgraded the outlook for developing economies to 4,3% growth from a forecast of 4,5% in October.
The world economy grew 3,1% and developing economies 4% in 2015. Both figures were the weakest since the recession year 2009. Falling commodity prices have hurt countries that export raw materials.
The IMF trimmed its forecast for US economic growth to 2,6% this year from 2,8%, noting the prospect of higher American interest rates. It kept its 2016 forecast for China’s economy unchanged at 6,3%.-fin24