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
- 2Now is ‘right time’ for Catalonia independence vote, says Mas | euronews, world news
- 3Vatican rocked by another paedophilia scandal | euronews, world news
- 4Two container ships collide on Egypt’s Suez Canal | euronews, no comment
- 5British Muslims’ message to ISIL: Not in my name! | euronews, world news
- 6Sweden becomes first European nation to recognise Palestine | euronews, world news
- 7Algeria: ISIL offshoot releases video threatening French hostage Hervé Gourdel | euronews, world news
- 8How nasheeds became the soundtrack of jihad | euronews, world news
- 9International tv news | euronews: European and International tv news bulletin
- 10Revealed: Europe’s capital cities where it’s hardest to be a foreigner | euronews, world news
- 11European Union News | euronews: latest breaking news and headlines about European Union
- 12Emma Watson threatened with naked photos leak after UN equality speech | euronews, world news
- 13Iceland volcano ‘pollutes Paris’ | euronews, world news
- 14Ebola: Six new suspected cases in Spain | euronews, world news
- 15Learning through “serious games” | euronews, learning world
- 16euronews speaks to Ban Ki-moon ahead of key UN and climate change talks | euronews, the global conversation
- 17All you need to know about the Ebola virus | euronews, world news
- 18US delivers technical aid to Ukraine but warns over security | euronews, world news
- 19euronews apps : iPhone, iPad, Android, Windows Phone 8, Windows 8, Nokia S40, Nokia Asha, Smart TV and Google Glass
- 20Global warming to ‘cause 250,000 extra deaths a year’ | euronews, world news
Wires > Business
- 16:11 CET FTSE edges lower as Tesco’s woes mount
- 16:09 CET Euro zone consumer confidence rises in October
- 15:54 CET Lawmakers blame bosses, regulator in Co-op Bank probe
- 15:48 CET Big bang, not big bucks, the key for euro zone bank lending
- 15:08 CET Tesco accounting black hole deepens, chairman to step down
- 14:39 CET UK fraud prosecutor seeks more cash for big cases
- 14:32 CET UK’s rebounding economy sees slowing industrial orders, retail…
- 14:31 CET Engine parts supplier questions case for Airbus A380 upgrade