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4/15/15

Global Economy: IMF ‘complex forces’ are shaping world economy with growth moderate

The International Monetary Fund has issued a warning that global growth remains fragile and moderate.

The IMF’s World Economic Outlook for 2015 says the prospects for advanced economies are improving, but only slightly, while emerging markets will see a slowdown.

Oil exporting nations will also experience a difficult year.

Olivier Blanchard is Chief Economist for the IMF says: “An unusually complex set of forces are shaping the world economy. Some such as the decline in the price of oil and the exchange rate movement are highly visible. But some from the legacies of the crisis that are hurting potential growth are less visible, but play a really important role behind the scenes.”

Globally growth is expected to be up on 2015, but some countries are being held to ransom by climatic conditions, such as drought in Brazil.

India is set to grow by 7.5 percent with the US hitting the 3.1 percent growth mark.
Russia is being squeezed by both falling oil prices and the sanctions and instability surrounding the situation in Ukraine.

On the bright side the IMF believes that despite a slowdown of growth in emerging markets in 2015 that is set to change and will drive global growth up to around 3.8 percent for 2016.

Read more: IMF ‘complex forces’ are shaping world economy with growth moderate | euronews, economy

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