BEIJING, Oct. 8 (Xinhuanet) -- The International Monetary Fund has slightly lowered its outlook for global economy this year and next. This is mostly because of weaker expansion in Japan, Latin America and Europe. It says the global Economy will grow 3.3 percent this year, one -tenth of a point below what it forecast in July. This report comes courtesy from Reuters.
The third time is not a charm. The International Monetary Fund cut its global economic growth estimates for the third time this year, warning of slower growth in core eurozone areas, Japan and in big emerging markets like Brazil.
"The recovery continues but it is weak and it is uneven," said Olivier Blanchard, IMF chief economist.
The new data, which roiled stock markets on Tuesday, showed the overall expansion forecast down to 3.3 percent for this year and 3.8 percent in 2015, dragged lower by weakness in some key economies.
The United States showed a slight improvement, while the advanced economies remained unchanged to lower. China, a key driver for the global economy, showed tepid growth.
"And there is a sense that the positive sentiment tied to the richer economies, may be underestimated. Bill Adams, Senior International Economist, PNC Financial Services Group," said Bobbi Rebell, a Reuters correspondent.
"I think the IMF downgrade is taking into account that a number of trouble spots around the globe are growing more slowly this year than they had expected. But at the same time, we are entering into a period where the U.S., the U.K., Canada, Mexico, there are pockets of the global economy that are doing well, and are close to normal. So as parts of the global economy normalize you could see better business sentiment, better investor sentiment, more appetite for risk in the real economy, and that could lead to faster investment faster hiring and faster growth," Bill said.
The projections set the stage for this week’s global economic policymakers meetings in Washington DC.
(Source: CNTV.cn)
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