The six-year-old global recovery is showing some rust.
The International Monetary Fund cut its world growth outlook, as the commodities slump and political gridlock push Brazil deeper into recession, plunging oil prices hobble Mideast crude producers, and the rising dollar curbs US prospects.
The global economy will expand 3.4% this year, down from a projected 3.6% in October, the IMF said Tuesday in a quarterly update to its World Economic Outlook. The Washington-based fund also cut its forecast for growth in 2017 to 3.6%, down from 3.8% three months ago.
The fund's forecast offers little solace amid a gloomy start to 2016 for financial markets. The Standard & Poor's 500 Index of stocks is off to its worst start to a year on record, as the plunge in oil prices and tightening US monetary policy drive flight from riskier assets around the world.
"This coming year is going to be a year of great challenges and policy makers should be thinking about short-term resilience and the ways they can bolster it, but also about the longer-term growth prospects," IMF chief economist Maurice Obstfeld said in a fund article accompanying the forecast.
The IMF estimates the global economy grew 3.1% last year, the weakest pace since the 2009 recession. Growth in emerging markets and developing nations slowed for the fifth straight year.
The fund said risks to the global outlook remain tilted to the downside, with the world facing three big adjustments: the emerging-market slowdown, China's shift to growth driven less by exports and manufacturing, and the Federal Reserve's gradual exit from ultra-low interest rates. Global growth could be derailed if these challenges aren't managed, the IMF warned.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
The International Monetary Fund cut its world growth outlook, as the commodities slump and political gridlock push Brazil deeper into recession, plunging oil prices hobble Mideast crude producers, and the rising dollar curbs US prospects.
The global economy will expand 3.4% this year, down from a projected 3.6% in October, the IMF said Tuesday in a quarterly update to its World Economic Outlook. The Washington-based fund also cut its forecast for growth in 2017 to 3.6%, down from 3.8% three months ago.
The fund's forecast offers little solace amid a gloomy start to 2016 for financial markets. The Standard & Poor's 500 Index of stocks is off to its worst start to a year on record, as the plunge in oil prices and tightening US monetary policy drive flight from riskier assets around the world.
"This coming year is going to be a year of great challenges and policy makers should be thinking about short-term resilience and the ways they can bolster it, but also about the longer-term growth prospects," IMF chief economist Maurice Obstfeld said in a fund article accompanying the forecast.
The IMF estimates the global economy grew 3.1% last year, the weakest pace since the 2009 recession. Growth in emerging markets and developing nations slowed for the fifth straight year.
The fund said risks to the global outlook remain tilted to the downside, with the world facing three big adjustments: the emerging-market slowdown, China's shift to growth driven less by exports and manufacturing, and the Federal Reserve's gradual exit from ultra-low interest rates. Global growth could be derailed if these challenges aren't managed, the IMF warned.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
0 comments:
Post a Comment