IMF warns of 'weak and uneven' global recovery
The International Monetary Fund has cut its forecast for global
economic growth for this year and the next and warned that recovery is
"weak and uneven".
It is now forecasting 3.3% growth this year, down from its forecast
in July of 3.4%. Next year, it predicts 3.8% growth, against an earlier
prediction of 4.0%.
The reductions reflect sharp downgrades to the outlook for the
eurozone, Russia, the Middle East and Japan. It remains positive on the
"This number hides very different evolutions. Some countries have
recovered or nearly recovered. But others are still struggling," said
IMF chief economist Olivier Blanchard.
Blanchard said the pace of recovery was becoming more country
specific. In the UK, it expects the economy to continue to grow
strongly, maintaining its July forecasts of 3.2% growth this year and
2.7% next year. It said activity had "become more balanced", driven by
consumption and business investment.
However, the fund said Europe was experiencing a "multispeed
recovery" and downgraded its growth forecasts for Germany, France and
Italy saying progress was still "slow and tentative" in many countries.
"Growth in the euro area nearly stalled this year, even in the core,"