The latest International Monetary Fund report on the health of the world economy includes a lower forecast for growth in the US and a big downgrade for Japan after the earthquake and tsunami there.
It continues to predict a slow-paced global economic recovery but warned oil prices and inflation pose risks.
After global growth last year of five percent the IMF forecasts 4.4 percent this year accelerating slightly next year to 4.5 percent.
The US and euro zone will show little change. Growth of 2.8 percent in the states in 2010 and 2011. The euro zone saw 1.7 percent economic expansion last year which will slip to 1.6 percent this year.
Earthquake hit Japan will see growth slow to 1.4 percent this year from 3.9 percent last year.
The IMF stressed that risks to its forecast abounded, including a spike in oil and commodity prices, as well as inflation, Mideast and North African political unrest, and debt problems in Europe but its economists said they are not yet enough of a problem to derail the recovery.
It said the US economy is recovering at such a sluggish pace that the Federal Reserve needs to keep an easy monetary policy in place while the government comes to grip with its debts.
The Fund said inflation pressures were likely to build in developing countries as people pushed for higher wages in the face of pricier food and fuel.
The fastest growth was still coming from emerging economies, it said. China was expected to lead the way with growth of 9.6 percent this year
Copyright © 2014 euronewsMore about:
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Sweden becomes first EU country to recognise the Palestinian State | euronews, world news
- 3Italy swamped by flash floods | euronews, world news
- 4Back to School for Romania’s new First Lady | euronews, world news
- 5What will you ask US Senator John McCain? | euronews, world news
- 6Turkish president Erdogan unveils his new palace of a thousand rooms | euronews, world news
- 7India PM Modi appoints Yoga minister | euronews, world news
- 8Vladimir Putin most powerful man in the world – Forbes | euronews, world news
- 9[Live] Rosetta’s Philae lands on comet 67P and enters the history books | euronews, world news
- 10European e-revolution people rise up | euronews, world news
- 11International tv news | euronews: European and International tv news bulletin
- 12Where is the best place in Europe for women? | euronews, world news
- 13Obama’s ‘risky’ immigration gamble | euronews, world news
- 14Nadia Comaneci: gymnast of perfection and defector | euronews, the global conversation
- 15Putin plans to leave G20 talks early amid Ukraine pressure | euronews, world news
- 16Transcript of hanged Iranian woman’s final message released | euronews, world news
- 17US says ISIL makes $1 million-a-day selling oil – even to enemies | euronews, world news
- 18Syria: Islamic extremists pledge to press ahead with battle for Kobani | euronews, world news
- 19Edgars Rinkevics: “I am gay. Good luck all of you.” | euronews, world news
- 20International news | euronews, latest international news
Wires > Business
- 12:45 CET China’s CGN Power sets price range valuing IPO at up to $3.2…
- 12:07 CET Analysis – Countdown to missed opportunity for EU economy
- 11:24 CET Exclusive: China ready to cut rates again on fears of deflation -…
- 10:49 CET Countdown to missed opportunity for EU economy
- 10:40 CET Falling inflation a worry for Europe but also the world
- 09:25 CET Sweden’s Wallenberg dynasty prepares for sixth generation
- 08:09 CET Putin stands by hawkish Russian central bank – for now
- 20:17 CET Aviva says will compensate customers sold wrong annuities