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

  • Free speech vs. copyright in Supreme Court battle between Google, B.C. firm

    Economic CTV News
    OTTAWA -- A legal fight between Internet giant Google and a British Columbia technology company unfolds today in the Supreme Court of Canada, where they will duel over competing free speech and copyright infringement issues. Source
  • Asian stocks rise after record day on Wall Street

    Economic CTV News
    HONG KONG - Asian stocks rose Tuesday following another record day on Wall Street as investor optimism bounced back quickly after the Italian referendum. KEEPING SCORE: Japan's benchmark Nikkei 225 index climbed 0.5 per cent to 18,370.83 and South Korea's Kospi jumped 1.2 per cent to 1,985.85. Source
  • Ikea to offer expanded parental leave

    Economic CTV News
    NEW YORK - Ikea's U.S. division is offering longer parental leave to employees who are new parents, following similar overtures from tech companies like Netflix as it strives to keep good workers in an improving job market. Source
  • Indians look for solutions only when toxic pollution soars

    Economic CTV News
    NEW DELHI -- The truth of New Delhi's toxic air finally hit home for Rakhi Singh when her 3-year-old son began to cough constantly early this year. She bought air purifiers for her home. When a thick, grey haze turned the view outside her home into a scene from a bad science fiction film last month, she bought pollution masks. Source
  • China appeals to U.S. to stop disrupting acquisitions

    Economic CTV News
    BEIJING -- China has urged Washington to stop disrupting its foreign corporate acquisitions after President Barack Obama blocked the purchase of a German maker of semiconductor manufacturing equipment as a security risk. The proposed acquisition of Aixtron SE by China's Fujian Grand Chip was "pure market behaviour," a foreign ministry spokesman, Lu Kang, said Monday. Source
  • Families to spend more on groceries, restaurants in 2017: report

    Economic CTV News
    TORONTO - The typical Canadian family will spend up to $420 more on groceries and dining out next year, getting little relief from a recent drop in the cost of food, suggests a new report released Monday. Source
  • Notley aims to sell public on pipeline in B.C. in wake of protests

    Economic CTV News
    VANCOUVER - Some observers say Alberta's premier will have a difficult job trying to convince British Columbians to support a controversial pipeline project between the provinces. Rachel Notley is in B.C. for two days speaking with various media outlets about the Trans Mountain pipeline expansion project, which received federal approval last week. Source
  • Oil industry says carbon pricing coming, pump revenues back into cleaner tech

    Economic CTV News
    OTTAWA -- Canada's petroleum industry lobby group told the federal government this summer that carbon tax revenues from oil and gas should be pumped back into the industry in order to "not only preserve, but enhance" the sector. Source
  • Wages, full-time work sliding for young Canadians, StatsCan says

    Economic CBC News
    Unemployment rates among young Canadians have held relatively steady when compared with the mid-1970s, but the proportion of full-time or permanent jobs has changed sharply over that time, says Statistics Canada. In a study released Monday that looks at changes in the youth labour market from 1976 to 2015, Statistics Canada said the unemployment rate for the 15 to 24 age group averaged 13.2 per cent in 2015, slightly higher than the rate of 12.4 per cent seen in 1976. Source
  • Federal, Ontario governments talking 'investments' with Canada's big automakers

    Economic CTV News
    OTTAWA - The federal and Ontario governments are actively discussing major investments in the big automakers. Following the recent conclusion of labour negotiations, the auto companies are now in talks with the governments about investment opportunities in a sector that is a critical component of the Ontario and Canadian economies. Source