IMF Warns of Global Stagnation as Growth Outlook Cut Again
- Fund sees world GDP expanding 3.2% in 2016, 3.5% in 2017
- `There is no longer much room for error,' chief economist says
IMF Cuts Global Growth Forecast to 3.2%
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A prolonged period of slow growth has left the global economy more exposed to negative shocks and raised the risk that the world will slide into stagnation, the IMF warned.
The International Monetary Fund cut its world expansion forecast, as weak exports and slowing investment dim prospects in the U.S., a consumption-tax hike saps growth in Japan, and a slump in the price of everything from oil to wheat continues to hobble commodities producers. The world economy will grow 3.2 percent this year, down from a projected 3.4 percent in January, the IMF said Tuesday in a quarterly update to its World Economic Outlook.