Meanwhile, Canada’s misfortune was reflective of a larger issue worldwide with global GDP now predicted to grow by just 3.2 per cent: that’s a slip from 3.4 per cent outlined in January.
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The International Monetary Fund has made another gloomy forecast for global economic growth, warning of stagnation and “doldrums” if the sluggish pace of growth continues.
The IMF now sees this year’s economic growth at 0.6% from a forecast of 0.7% in January.
The IMF has, however, upgraded its China growth forecast by 0.2 percentage point for this year and the next to 6.5 per cent and 6.2 per cent, respectively. “Growth has been too slow for too long”, IMF Chief Economist Maurice Obstfeld told a media conference on Tuesday.
Whilst the IMF’s new forecast of 1.4% is only a whisker down on the 1.5% hitherto in effect, the outlook falls well short of the government’s 1.8% expected level of growth. But China, the world’s second-biggest economy, is trying to manage a tough transition away from fast but unsustainable growth based on investment and toward slower, steadier growth built on consumer spending.
The United States’ economic growth outlook was downgraded from 2.6% to 2.4% and that of the euro zone from 1.7% to 1.5%.
Retaining its October 2015 forecast for India, IMF said, “With the revival of sentiment and pick-up in industrial activity, a recovery of private investment is expected to further strengthen growth”. The IMF cut its growth forecast for Qatar by 1.5 percentage point to 3.4 per cent in 2016 from 4.9 per cent in its previous report. Outside the Eurozone, the British economy is expected to grow at a steady rate of 1,9% in 2016 and 2,2% in 2017.
“Japan’s medium- to long-term growth prospects remain weak, primarily reflecting a declining labor force”, it also said.
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The World Economic Outlook identified as risks to growth, a sharper slowdown in China’s economic growth, exchange rate depreciation in emerging economies, and geopolitical risks such as terrorism, political discord refugee flows and epidemics which could have adverse impact on growth.
