IMF downgrades 2014 growth forecast for global economy to 3.4%

The International Monetary Fund (IMF) Thursday downgraded its 2014 growth forecast for the global economy to 3.4 percent from an earlier estimate of 3.7 percent, citing one-off factors and slower demand in emerging markets.

Growth in advanced economies is projected to pick up from 1.3 percent last year to 1.8 percent this year, down 0.4 percentage point from the April estimate of 2.2 percent, according to the IMF’s latest World Economic Outlook (WEO) Update.

U.S. growth is projected to average 1.7 percent in 2014, compared with an estimate of 2.8 percent three months ago.

China’s economy is forecast to grow 7.4 percent this year, down 0.2 percentage point from the April estimate of 7.6 percent.

The world’s economy is expected to grow 4 percent in 2015, the report said.

Park Sae-jin swatchsjp@ajunews.com

IMF downgrades 2014 growth forecast for global economy to 3.4%

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