IMF Downgrades Global Growth Forecast

The International Monetary Fund (IMF) has downgraded its world economic growth forecast yet again and warned of a backlash against cross-border economic integration in richer countries.

In its latest World Economic Outlook, the organization said Tuesday that it now saw the global economy growing by only 3.2 percent this year — 0.2 percentage points down on its January forecast, 0.4 percentage points lower than its estimate from October 2015 and 0.6 percent points down on its forecast from July.

It also cut its global growth estimate for 2017 to 3.5 percent, down from the 3.6 percent forecast in January.”Global growth continues, but at an increasingly disappointing pace that leaves the world economy more exposed to negative risks.

Growth has been too slow for too long,” IMF Chief Economist Maurice Obstfeld told a media conference on Tuesday, according to prepared remarks.

The IMF downgraded the outlook for all major advanced economies, including the U.S., Canada, the euro area, the U.K. and Japan.

Via: CNBC

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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 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