IMF: Weaker emerging markets to slow global growth
WASHINGTON (AP) - The International Monetary Fund has cut its global economic growth forecasts for this year and next, mostly because of slower expansion in India, China, Brazil and other developing nations.
The international lending agency now forecasts the global economy will grow 2.9 per cent this year and 3.6 per cent in 2014. Both are 0.2 percentage point lower than its July forecasts.
The IMF also lowered its outlook for US economic growth to 1.6 per cent this year and 2.6 per cent next year. That's 0.1 and 0.2 percentage point lower than in July, respectively.
The fund's forecasts assume the US government would partially shut down but for only a short period. It warned that failure to raise the US government's borrowing limit "could seriously damage the global economy".