The International Monetary Fund has downgraded its annual global growth forecast as poorer-than-expected US growth contributed to a sluggish start to the year.
In an update to its twice-yearly World Economic Outlook, the IMF reduced its growth projection for 2015 to 3.3 per cent from 3.5 after a disappointing first quarter, particularly in the US.
However, the Fund left its prediction for next year unvaried at 3.8 per cent, while slightly upgrading the outlook for the eurozone from 1.6 per cent to 1.7 per cent. Spain and Italy are expected to expand faster than previously thought in both 2015 and 2016. “The underlying drivers for a gradual acceleration in economic activity in advanced economies . . . remain intact,” the IMF said.
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