The International Monetary Fund cut its global economic growth forecast for 2016 on Tuesday as it expects a number of factors to weigh on world economies.
Global growth for this year is seen at 3.4 percent, up from a 3.1 percent forecast for 2015, but 0.2 percent lower than previously forecast, the IMF’s World Economic Outlook report said. The IMF said “pickup in global activity is projected to be more gradual than in the October 2015 World Economic Outlook, especially in emerging market and developing economies.”
“Risks to the global outlook remain tilted to the downside and relate to ongoing adjustments in the global economy,” according to the report.
The organization cited slower growth in emerging markets, especially in China, falling commodity prices, and rising interest rates in the U.S. as potential risks to global growth.
Weak Chinese manufacturing data — coupled with plunging commodity prices — have sent equity markets around the world into flux.
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