IMF to lower global growth forecast

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IMF to lower global growth forecast

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The IMF has given a gloomy forecast for the global economy. As of next week they will revise growth figures downwards.

Speaking at Georgetown University IMF chief Christine Lagarde said that growth had been insufficient and there were some serious clouds on the horizon.

“The global economy is weaker than we have hoped only six months ago,” she said adding, “so there is recovery, don’t get me wrong, but it is weaker that what we have thought, and we forecast a modest pickup in 2015, and that’s an important factor. The outlook for potential growth is pared down.”

The IMF’s last forecast in July predicted growth at 4 percent but high debt, high unemployment and low inflation could impede an economic recovery which Lagarde said is “brittle and uneven”.

“Among the advanced economies, clearly the US and in Europe, the UK are leading the charge and expected to be stronger,” explained Lagarde. “The recovery is much more modest in Japan and it is the weakest in the euro area where there are disparities in the currency zone.”

Reporting from Washington, euronews correspondent Stefan Grobe summed up:

“Christine Lagarde’s outlook on the global economy is subdued. As potential risks, she cited the situations in Ukraine and the Middle East as well as the growing Ebola epidemic. None of these threats will go away any time soon.”