Mubasher: The International Monetary Fund (IMF) lowered global growth forecasts for 2016, weighed by slowdown in China's trade and weak commodity prices that are hammering Brazil and other emerging markets.
IMF forecast that the world economy would grow at 3.4% in 2016 and 3.6% in 2017, down 0.2% point for both years from the previous estimates made last October.
The world economy is facing three big adjustments which are the emerging-market slowdown, China’s shift to growth driven less by exports and manufacturing, and the Federal Reserve’s gradual exit from low interest rates.
The fund added that slowing demand in China remained a risk to global growth and that weaker-than-expected Chinese imports and exports were negatively affecting other emerging markets and commodity exporters.
Lower oil prices will help support private consumption in Europe, so the IMF said it added 0.1% point to its 2016 euro area growth forecast, bringing it to 1.7%, where it will remain for 2017.
