IMF Downgrades Global Economic Growth For 2015

A family in Beijing. ChinaFotoPress/ChinaFotoPress via Getty Images

The International Monetary Fund (IMF) has downgraded its estimate on world economic growth for 2015 to 3.5% from 3.7%.

Releasing the World Economic Outlook update report in Beijing today, Olivier Blanchard, Economic Counsellor and Director of the IMF’s Research Department, said the world economy is facing strong and complex cross currents.

“On the one hand, major economies are benefiting from the decline in the price of oil,” he said. “On the other, in many parts of the world, lower long run prospects adversely affect demand, resulting in a strong undertow.”

Blanchard said the IMF still expects growth in 2015 to be better than last year.

However, the new forecast is slightly down from last October.

The IMF now sees global growth in 2015 at 3.5%, 0.3% higher than global growth in 2014, but 0.3% less than the forecast made in October.

For 2016, the IMF forecasts forecast 3.7% growth.

The IMF has revised upward to 3.6% economic growth in the US, Euro area growth down to 1.2% and Japan growth down to 0.6%.

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