The latest projection is 0.2 percent less than its earlier forecast in July and 0.3 percent down from global growth in 2014.
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A modest recovery in the euro area is expected to continue amid the European Central Bank’s bond buying stimulus, with growth of 1.5% this year and 1.6% next year, roughly in line with the previous forecast.
In October last year, it predicted the Korean economy would grow four percent this year, but the prediction has been dwindling to 3.7 percent in February and 3.4 percent in April.
“Near-term economic growth still looks stronger in advanced economies, compared with the recent past, but weaker in the emerging market and developing economies”.
The worldwide Monetary Fund has made further across-the-board cuts to its global economic growth forecasts.
The worldwide Monetary Fund (IMF) has downgraded its forecast for global economic growth, noting that falling commodity prices and jumpy financial markets have raised global risks. “Moreover, downside risks to the world economy appear more pronounced that they did just a few months ago”.
“SA had no major strikes this year, and this automatically lifts growth”, Mr Schimmelpfennig said.
The eurozone will experience stagnant growth, the report said, without a change in projection of 1.5 percent since July.
In India, near-term growth prospects remain favourable, and the decrease in the current account deficit has lowered external vulnerabilities, it said.
In addition to crashing prices for its oil exports, it faces Western sanctions over its role in the Ukraine crisis – putting it on track for a contraction of 3.8 per cent this year, the International Monetary Fund forecast. The information is included in the report World Economic Outlook released this Tuesday (6th).
The growth forecast for these economies was cut to 4 percent for 2015 due to a sharp decline in commodity prices.
Collapsing energy prices are also hurting Canada.
The Federal Reserve last month cited economic weakness around the world – and especially in China – when it chose to postpone a long-anticipated increase in short-term USA interest rates, which it has kept near zero since December 2008.
The slowdown drastically in China has reshaped the demand for global commodities that many developing economies have come to rely on to push growth. The IMF’s forecast for 2020 sees India occupying the top slot among major economies with a growth rate of 7.7%. The nation’s currency, the real, has shed almost one-third of its value this year – the most of 24 emerging markets tracked by Bloomberg.
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In August, exports to the United States fell 3.0 per cent to $33.7 billion while imports from the US slipped 0.8 per cent to $30.8 billion.
