IMF cuts its forecast for global economy in 2013

WASHINGTON (AP) - The International Monetary Fund (IMF) has lowered its outlook for the world economy this year, predicting that government spending cuts will slow US growth and keep the euro currency alliance in recession.

The global lending organisation has cut its forecast for global growth to 3.3 per cent this year, down from its forecast in January of 3.5 per cent. It's keeping its prediction of 4 per cent global growth in 2014.

The IMF expects the US economy to expand by 1.9 per cent this year. That's below its January estimate of 2.1 per cent and last year's US growth of 2.2 per cent. Still, the IMF says the US economy should expand 3 per cent in 2014.

The organisation is issuing its latest forecasts in advance of spring meetings of the IMF and World Bank in Washington this week.