The IMF has also downgraded global growth projections, to 3.4 per cent this year and 3.6 per cent in 2017 – 20 basis points lower than its prediction in October, but slightly up on 2015’s growth.
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IMF, however, upgraded its China growth forecast by 0.2 percentage point for this year and the next to 6.5% and 6.2%, respectively.
International Monetary Fund cut its 2016 global growth forecast for the fourth time in the past year to 3.2 per cent, citing Chinas slowdown, persistently low oil prices and chronic weakness in advanced economies.
The IMF has also predicted Iran’s average economic growth by 2021 at 4 percent.
Highlighting this scenario to more than 500 business journalists from around the world, he revealed a slight acceleration in growth this year from 3.1 per cent to 3.2 per cent, followed by 3.5 per cent growth this year. The IMF cautioned that the sluggish and disappointing global growth, which has been a persistent problem ever since the 2008-2009 financial crisis, “has scarring effects that themselves reduce potential output and with it, consumption and investment”. Estimates for Japan were cut in half, to 0.5 percent, while Brazil’s economy is now expected to shrink 3.8 percent.
However, the expected growth for most of the world was revised downward.
“The recovery is projected to strengthen in 2017 and beyond, driven primarily by emerging market and developing economies, as conditions in stressed economies start gradually to normalize”, the fund said in its report. Growth for 2017 is also down to 3.5 per cent from the previous report of 3.6 per cent.
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.
“The forecast of economic growth in the CIS countries will remain weak, which is due to the recession in Russian Federation, as well as low oil prices”. The IMF has not changed its forecast of 2.2% growth in 2017.
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According to the International Monetary Fund, the harmonized inflation will continue in 2016 to be in a negative field, reaching up to -0.3% and in the framework of the further development of the economy in 2017 will reach 1.3%.
