IMF Downgrades Global Growth Forecast

Olivier Blanchard, Economic Counselor and Director of Research of the International Monetary Fund (IMF), delivers a statement during a press conference on the IMF World Economic Outlook update in Beijing, China, 20 January 2015. Photo by EPA/BGNES

The International Monetary Fund (IMF) has downsized its global growth forecast for 2015 by 0.3% to 3.5% in the January 2015 World Economic Outlook (WEO).

The global growth forecast for 2016 has also been revised down by 0.3% relative to the October 2014 WEO, reaching 3.7%.

In advanced economies, growth is projected to rise to 2.4% in both 2015 and 2016.

The IMF has revised up its 2015 forecast for advanced economies by 0.1% from the October 2014 WEO.

In emerging market and developing economies, growth is projected to remain broadly stable at 4.3% in 2015 and to increase to 4.7% in 2016—a weaker pace than forecast in the October 2014 WEO.

Under the October 2014 WEO, emerging market and developing economies were to register growth of 4.9% in 2015 and 5.2% in 2016.

The 2015 economic growth forecast for the US has been increased by 0.5% to 3.6%, largely due to more robust private domestic demand, while the 2016 economic growth forecast has been revised up to 3.3% by 0.3%.

The 2015 euro area growth outlook has been revised down to 1.2%, dropping by 0.2% from the October 2014 WEO, while the 2016 forecast has been downgraded by 0.3% to 1.4%.

In Japan, the 2015 growth forecast has been downsized by 0.2% to 0.6%.

China’s growth forecast for 2015 has been downgraded from 7.1% to 6.8%, while the 2016 forecast has been downsized by 6.8% to 6.3%.

Russia’s 2015 growth forecast has been downgraded to –3.0%as a result of the economic impact of sharply lower oil prices and increased geopolitical tensions, while the 2016 growth forecast stands at -1.0%

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