IMF lowers world growth forecast; US outlook increases sharply

The International Monetary Fund (IMF) on Tuesday lowered its forecast for global growth while sharply increasing its projections for the United States.

The fund projects global growth this year will remain unchanged from 2013 at 3.3 percent, down from the 3.7 percent estimated in April. World growth will rise to 3.8 percent in 2015, the fund said. 

{mosads}Economic setbacks for advanced economies in the first half of 2014 and a less-optimistic outlook for emerging market economies account for the weaker growth projection, the IMF said.

For advanced economies, like that of the United States, growth is estimated to rise to 1.8 percent in 2014 and 2.3 percent in 2015.

The outlook for the U.S. was increased sharply to 2.2 percent, up from the 1.7 percent April projection. The IMF estimates U.S. growth will rise to 3.1 percent in 2015. 

Other major nations have not matched the pace of growth in the U.S., the IMF found. Slower growth in emerging market and developing economies accounts for the “lion share” of global growth, the fund said. This group includes Russia, China, India and Latin America, among other countries. 

Economists for the fund are mainly concerned about countries that use the euro as a currency falling back into recession and about a slowdown in China’s and Brazil’s economies.