Accessibility links

Breaking News

IMF Cuts Global Growth Forecast

A laborer winnows rice at a marketyard at Bavla, west of the western Indian city of Ahmedabad.
The International Monetary Fund (IMF) has lowered its outlook for global growth over the next two years.

The Bretton Woods institution said Europe's financial crisis and slower expansion in China and India have weakened the world economy.

A quarterly update to its World Economic Outlook said it expects the world economy to expand 3.5 percent this year, down slightly from its previous estimate of 3.6 percent in April.

In a midyear health check of the work economy, the IMF also cautioned the productive capacity in a number of emerging market economies, such as China, India, and Brazil, may be lower than previously believed and future growth could disappoint.

The IMF also cut its forecast for global growth to 3.9 percent in 2013, from 4.1 percent three months ago.

Based on reporting by AFP, AP, and Reuters