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

  • Billy Bee and Doyon honey sold in Canada to be made in Canada, too

    Economic CBC News
    The company that owns the Billy Bee and Doyon honey brands says it will start using only Canadian honey for both products in Canada this year. McCormick & Co. says Billy Bee and Doyon products containing all-Canadian honey will start appearing on store shelves in June, while the Billy Bee organic variety will arrive before the end of the year. Source
  • Trump plans to slash U.S. corporate tax rate to 15%

    Economic CBC News
    President Donald Trump plans to stick with his campaign pledge to slash the corporate tax rate from 35 per cent to 15 per cent, but the dramatic cut raises a problematic question for the White House: How can the president deliver the "massive" tax cut he promised without also blowing a massive hole in the budget? Source
  • Reducing debt among Barrick Gold's priorities: president

    Economic CTV News
    TORONTO -- Barrick Gold says it will focus on maximizing its free cash flow, reducing debt and maintaining investment discipline in the year ahead. Company president Kelvin Dushnisky told Barrick's annual meeting Tuesday that the gold mining giant will also work on transforming its business to better use technology. Source
  • Billy Bee and Doyon honey brands shifts to all-Canadian honey in Canada

    Economic CTV News
    TORONTO -- The company that owns the Billy Bee and Doyon honey brands says it will start using only Canadian honey for both products in Canada this year. McCormick & Co. says Billy Bee and Doyon products containing all-Canadian honey will start appearing on store shelves in June, while the Billy Bee organic variety will arrive before the end of the year. Source
  • Wells Fargo board re-elected as management faces protests

    Economic CBC News
    Wells Fargo & Co.'s annual meeting turned raucous when it was repeatedly interrupted by angry shareholders on Tuesday as the bank's chairman and chief executive tried to calm nerves ahead of a vote that could oust the majority of its board. Source
  • Wells Fargo shareholders disrupt meeting as fate of board members awaited

    Economic CBC News
    Wells Fargo & Co.'s annual meeting turned raucous when it was repeatedly interrupted by angry shareholders on Tuesday as the bank's chairman and chief executive tried to calm nerves ahead of a vote that could oust the majority of its board. Source
  • New Ontario rent control rules may prompt some condo owners to sell: report

    Economic CBC News
    New rent control measures unveiled last week by the Ontario government could wind up pushing some small investors out of the condominium market, according to a new report. Urbanation, a research and consulting firm specializing in the Toronto condominium market, said the imposition of rent control by the government on recently built units is the "single biggest and potentially most harmful change" introduced in the government's plan. Source
  • Loonie takes a hit but shares of most lumber companies rise after duties

    Economic CTV News
    Canada-U.S. relationship bigger, more important than any one 'irritant,' says PM U.S. President Trump takes first swing in lumber war Source
  • Trump's tax plan could face a budget deficit challenge

    Economic CTV News
    WASHINGTON -- President Donald Trump plans to stick with his campaign pledge to slash the corporate tax rate from 35 per cent to 15 per cent, but the dramatic cut raises a problematic question for the White House: How can the president deliver the "massive" tax cut he promised without also blowing a massive hole in the budget? Source
  • Eurozone deficit down to lowest level since early 2008

    Economic CTV News
    LONDON -- Following years of strict budget restraint, particularly in Greece, the level of government borrowing across the 19-country eurozone has fallen to its lowest level since before the most acute phase of the global financial crisis, official figures showed Tuesday. Source