The International Monetary Fund (IMF) just cut its forecast for global GDP growth in 2014 to 3.4% from 3.6%.
“Global growth could be weaker for longer, given the lack of robust momentum in advanced economies,” they said via Bloomberg. “Monetary policy should thus remain accomodative in all major advanced economies.”
Among the biggest revisions was U.S. 2014 GDP growth, which was cut to 1.7% from an earlier forecast of 2.8%.
The organisation expects the Euro area to expand 1.1%, and Japan to gain 1.5%.
They do, however, expect global growth to accelerate to 4.0% in 2015.
Construction and mining machinery giant Caterpillar offered its own growth forecasts earlier today.
“We anticipate global economic growth in 2014 of about 2.5 per cent, a modest improvement from 2013 levels,” said Caterpillar. “Most developed countries continue to pursue pro-growth policies, which should continue to benefit those economies. However, many developing countries have raised interest rates and in many of those countries rates are near the peak reached in 2011.”