IMF downgrades global growth forecasts
THE INTERNATIONAL Monetary Fund has downgraded its global growth forecast to 3.25pc for this year compared with an earlier expectation of 4pc.
The downgrade comes on expectations of a mild recession in the eurozone this year.
It slashed its forecast for the region to -0.5pc from 1.1pc in its September outlook.
The IMF blamed the eurozone change on rising borrowing costs for member countries, the effects of banking problems on the real economy and the impact of austerity measures.
“The outlook for growth is mediocre, and it could be worse,” said Olivier Blanchard, the IMF’s economic counsellor.
“The world recover, which was weak in the first place, is in danger of stalling,” he told a press conference in Washington.
“The epicentre is Europe, but the rest of the world is increasingly affected.”