The International Monetary Fund cut its global economic growth forecast for 2016 on Tuesday as it expects a number of factors to weigh on world economies.
Global growth for this year is seen at 3.4 percent, up from a 3.1 percent forecast for 2015, but 0.2 percent lower than previously forecast, the IMF’s World Economic Outlook report said.
The IMF said “pickup in global activity is projected to be more gradual than in the October 2015 World Economic Outlook, especially in emerging market and developing economies.”
“Risks to the global outlook remain tilted to the downside and relate to ongoing adjustments in the global economy,” according to the report.
The organization cited slower growth in emerging markets, especially in China, falling commodity prices, and rising interest rates in the US as potential risks to global growth.
In its report released on Tuesday, IMF kept India’s gross domestic product (GDP) growth at 7.3 percent for 2015 and forecasts it to maintain GDP growth for 2016 and 2017 at 7.5 percent.
However, the growth forecast for US has been revised to 2.6 percent from earlier projected 2.8 percent for 2016 and 2017.
It further predicts emerging markets to grow from 4 percent in 2015 to 4.3 percent in 2016 and 4.7 percent in 2017.
Updates to follow.