IMF today lowered its forecast for global economic growth this year, taking into account the impact of the recent weakness in the United States.
But the global financial institution said that the outlook remains for growth next year despite the debt crisis in Greece and the current instability of China’s financial markets.
In an update of its report on the prospects of the world economy, the IMF said the global economy should expand by 3.3% this year, 0.2% below forecasts in April. Growth must be accelerated to reach 3.8% next year.
The update comes as a result of the lower forecast for US growth. The US economy shrank in the first quarter.
The IMF said it expects the US economy to grow by 2.5 percent this year – lower for this growth forecast for the US as pognozata 3.1% in April. The IMF also said that the economies of Canada and Mexico have also shrunk.
IMF maintains growth forecast in the euro area, although Greece came to the brink of exit from the currency bloc.
“Stress tests in the last 10 days (about the events in Greece) reassured us and make us think that if things go wrong in Greece … the rest of the world will probably survive despite this,” said Blanchard.
Chinese stock markets fell by more than 30% last month, prompting regulators to impose certain regulations
The IMF said that China has the resources to confront difficulties.
The Fund also reiterated his warning that abrupt changes in asset prices and volatility in financial markets could disrupt their forecast, although expected geopolitical tensions linked to Russia and the Middle East to calm down next year.