International Monetary Fund cuts economic 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

  • From condoms to caskets: merchandise marks Canada's 150th birthday

    Economic CBC News
    It's been said that Canadians are not brash about their patriotism, but you wouldn't know it from the variety of merchandise, big and small, being snapped up in advance of Canada's 150th birthday July 1. From T-shirts to hats, flags to flasks, condoms to caskets, goods adorned with celebratory logos are popping up faster than you can say sesquicentennial. Source
  • Canadian lumber producers brace for second round of softwood lumber duties

    Economic CTV News
    MONTREAL -- Canada's softwood lumber industry is bracing for a second wave of U.S. duties expected to come Monday that could put further pressure on producers, particularly smaller ones, to cut jobs. The U.S. Source
  • Warning labels might be coming to cheese: CBC's Marketplace consumer cheat sheet

    Economic CBC News
    Miss something this week? Here's the consumer news you need to know from CBC-TV's Marketplace. Get this in your inbox every Friday. Sign up here. Fake drugs American prosecutors accuse CanadaDrugs.com and its CEO Kris Thorkelson of selling unapproved and counterfeit cancer drugs to U.S. Source
  • Debt, protectionism could drag down improving global economy

    Economic CTV News
    FRANKFURT -- The global economy has picked up and prospects for the next few months are the best in a long time. But the recovery is maturing and faces risks from populist rejection of free trade and from high debt that could burden consumers and companies as interest rates rise. Source
  • Air bag maker Takata bankruptcy expected Monday

    Economic CTV News
    DETROIT -- Drowning in a sea of lawsuits and recall costs, Japanese air bag maker Takata Corp. is expected to seek bankruptcy protection in Tokyo and the United States early Monday. Takata was done in by defective air bag inflators that can explode with too much force, spewing out shrapnel. Source
  • How Sears' troubles could hasten radical change in Canada's malls

    Economic CBC News
    Sears' plan to shut down 59 of its locations is grim news for the chain's landlords across Canada. Could it also spell doom for the nation's neighbourhood malls? Anchor tenants — typically big department stores — have always been a critical component of mall design. Source
  • Proposed rules for CRA amnesty program could expose more tax-cheat advisers

    Economic CBC News
    The Canada Revenue Agency is tightening its amnesty program for tax cheats, including a proposed rule that could expose more of the shady advisers who set up dodgy tax schemes to help clients hide their money. Source
  • Italian PM 'guarantees' savers' accounts in 2 troubled banks

    Economic CTV News
    ROME -- Italy's premier says holders of accounts in two troubled Italian banks will have their savings guaranteed despite insolvency proceedings. Premier Paolo Gentiloni was referring to Veneto Banca and Banca Popolare di Vicenza, each struggling with unpaid loans. Source
  • Forget the poop scooping: who will pay the bills for your pet?

    Economic CBC News
    The scene is so common, it's cliché: Your adorable child looks longingly into your eyes, begging for a pet. You somehow navigate the emotionally fraught minefield of cat vs. dog. Then it's time to talk chores. Source
  • 'Eventually, many will run out': How an LCBO strike could impact restaurants and bars

    Economic CBC News
    A long drawn-out strike by liquor store workers could have a significant impact on Ontario's restaurants, wine importers, bars and consumers — but it may offer a boon to some local wineries. "Eventually, many [restaurants and bars] will run out, if not all, if it goes into a month, two months," said Tony Elenis, president and CEO of the Ontario Restaurant Hotel and Motel Association. Source