IMF World Economic Outlook
- “Moderate” global growth expected;
- UK’s growth 0.1% revised down on last year’s prediction;
- Brazil, Russia and Ukraine to contract;
- India to enjoy 7.5% growth this and next year.
A WARNING that global economic growth has slowed to “moderate” has come from the International Monetary Fund (IMF).
While UK growth is forecast as 2.7% for 2015, unchanged from the IMF’s January forecast, and 2.3% next year, revised down by 0.1%, it said there remained “uneven prospects” across the main countries and regions, reports BBC Business.
“In the United Kingdom, lower oil prices and improved financial market conditions are expected to support continued steady growth,” said the IMF.
Compared with 2014, it says the outlook for advanced countries is improving but growth in emerging and developing economies is projected to be lower.
It says there will be weaker prospects in 2015 for some oil-exporting nations.
The IMF’s World Economic Outlook said growth was likely to be 3.5% this year, in line with its January forecast.
Despite the sluggish outlook for 2015, it said growth in emerging markets is expected to pick up in 2016, which will drive an increase in global growth next year to 3.8%.
The outlook document is the IMF’s bi-annual analysis and projections of economic developments. It also publishes further interim forecasts.
It foresees contracting fortunes for Brazil, Russia, Ukraine while India will experience growth of 7.5% this year and next.
It said: “For other emerging market commodity exporters, the impact of lower oil and other commodity prices on the terms of trade and real incomes is projected to take a toll on medium-term growth.”
Meanwhile, the Eurozone economy is projected to grow by 1.5% this year and 1.6% in 2016.
There is no change to the forecast for China, namely a continued slowdown to 6.8% this year and 6.3% in 2016.
The US is seen as growing by 3.1% in 2015 and 2016, down 0.5 and 0.2 percentage points on the previous forecasts.
