IMF cuts global growth forecasts

The International Monetary Fund cut its growth projections Tuesday for the world and the United States this year from its earlier estimates in October, citing a drag from slowdowns in emerging economies such as China.

See Full Article

In its revision to the semiannual World Economic Outlook, the Washington-based lender said it kept its 2016 forecast for Japan's expansion unchanged from the October report thanks to factors such as support for the economy from the government and the central bank.

The IMF said the global economy will grow 3.4 per cent in 2016 in terms of real gross domestic product, down 0.2 percentage point from the earlier estimate. The world expanded 3.1 per cent in 2015, it said.

"The picture for emerging market and developing economies is diverse but in many cases challenging," the IMF said in the update of the October report, expecting the global economy to expand 3.6 per cent in 2017, also revised down 0.2 point.

China's efforts to change structure from an economy led by exports and infrastructure investment to a consumption-oriented economy are among the factors that will continue to "weigh on growth prospects" in 2016 and 2017, the IMF said.

The IMF slashed its growth projections for the United States by 0.2 point to 2.6 per cent both in 2016 and 2017. The U.S. growth rate for 2015 came to 2.5 per cent, it said.

The Japanese economy is expected to expand 1.0 per cent in 2016, unchanged from the earlier projection, and 0.3 per cent in 2017, down 0.1 point, the IMF said, noting Japan expanded 0.6 per cent last year.

Growth in Japan is "expected to firm in 2016, on the back of fiscal support, lower oil prices, accommodative financial conditions, and rising incomes," the IMF said.

The emerging and developing economies will expand 4.3 per cent overall this year following 4.0 per cent growth last year, and 4.7 per cent in 2017, the IMF said. The projections for 2016 and 2017 were both down 0.2 point from the earlier forecasts.

The IMF expects China to grow 6.3 per cent in 2016 and 6 per cent in 2017, both unchanged from the October announcement. China grew 6.9 per cent in 2015, according to the IMF.



Advertisements

Latest Economic News

  • Asian markets drop despite Wall Street gains

    Economic CTV News
    BEIJING - Asian markets were mostly lower Tuesday after Wall Street gained as Italy moved toward forming a euroskeptic-led government. KEEPING SCORE: The Shanghai Composite Index declined 0.2 per cent to 3,208.20 and Sydney's S&P-ASX 200 lost 0.7 per cent to 6,039.20. Source
  • Anxiety lands as WestJet pilot strike looms

    Economic CBC News
    Dana Sorensen booked a WestJet flight from her home in Vancouver to Calgary, where she's racing in the upcoming ultra-marathon. But the anxiety of a looming pilots' strike was too much to bear. She paid for another flight on a different airline, a peace of mind that cost her an extra $500. Source
  • Banks poised to report strong Q2 despite housing slowdown: analysts

    Economic CTV News
    TORONTO -- Canada's biggest banks are upping the ante in the mortgage wars amid slowing growth and national housing sales at lows not seen in several years, but analysts say real estate market woes won't dent lenders' earnings, just yet. Source
  • Insider Q&A: Should investors worry about 'peak earnings?'

    Economic CTV News
    NEW YORK -- Speaking about a peak suddenly made stocks weak. Investors got a rude awakening in April when executives at Caterpillar said the construction and mining equipment company didn't expect to top its first-quarter profit for the rest of the year. Source
  • From airlines to pizza parlours, EU businesses adopt data law

    Economic CTV News
    LONDON -- Lisa Meyer's hair salon is a cozy place where her mother serves homemade macaroons, children climb on chairs and customers chat above the whirr of hairdryers. Most of the time Meyer is focused on hairstyles, colour trends and keeping up with appointments. Source
  • China says it can't guarantee no more trade tension with U.S.

    Economic CTV News
    BEIJING -- China's government said Monday it cannot guarantee that renewed trade tension with Washington can be avoided after U.S. Treasury Secretary Steven Mnuchin declared a temporary truce in a spiraling dispute that prompted worries of a chilling of global commerce. Source
  • Trump pulls back from brink of trade war with China

    Economic CTV News
    WASHINGTON -- U.S. President Donald Trump on Monday hailed his administration's temporary truce with China on trade, even as his Treasury secretary and China struck a note of caution on the latest agreement. After high-level talks in Washington last week, Beijing has agreed to "substantially reduce" America's trade deficit with China. Source
  • Oregon's flooded recreational pot market a cautionary tale: economists

    Economic CBC News
    As marijuana farmers in Oregon say a flood of supply is killing their businesses less than three years after recreational cannabis was legalized, economists say it's a warning to Canada. Stephen Easton, professor of economics at Simon Fraser University and senior fellow at the Fraser Institute, says large fluctuations in price and supply are bound to happen when you create a legal market where an illegal market already exists. Source
  • Canada should heed cautionary tale of Oregon's flooded pot market

    Economic CTV News
    VANCOUVER -- As marijuana farmers in Oregon say a flood of supply is killing their businesses less than three years after recreational cannabis was legalized, economists say it's a warning to Canada. Stephen Easton, professor of economics at Simon Fraser University and senior fellow at the Fraser Institute, says large fluctuations in price and supply are bound to happen when you create a legal market where an illegal market already exists. Source
  • Global markets higher as U.S., China put trade war on hold

    Economic CTV News
    SEOUL, Korea, Republic Of -- Global stock markets were higher on Monday as investors cheered the outcome of negotiations between the United States and China that put a trade war on hold, clearing uncertainty. KEEPING SCORE: European markets opened higher. Source