IMF Lowers Global Growth Forecast

The International Monetary Fund (IMF) has lowered its forecast for global economic growth this year, from 3.7% to 3.4%.

The reduction reflects a weak start to the year in the United States and a number of downgrades to the outlook for several other individual economies.

However there were uplifts for some countries, the largest being the UK.

The global forecast for 2015 is unchanged, with growth predicted to be 4%.

Several countries do receive an upgrade and the largest for 2014 is for the UK – from a 2.8% to a 3.2% expansion of the economy.

It is the latest in a string of upgrades from the IMF and others.

There is a smaller uplift to the IMF forecast for the UK for next year.

Introducing the new forecasts, the IMF’s chief economist Olivier Blanchard said: “The recovery continues, but it remains a weak recovery, indeed a bit weaker than we forecast in April.”

Nonetheless he said that the headline – the revision for this year – “makes things look worse than they really are”.

That is because, he said, “it largely reflects something that has already happened”.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza