The IMF projects smaller than initially expected economic growth for 2016 and 2017.

The Global Economic Outlook report forecasts a growth of 3,2% this year and 3,5 for 2017. The deceleration of Chinese economy and knock-on effect on commodity and energy reliant regional economies, such as Brazil, Nigeria, and Russia explains much of the pessimism.

Brazil’s economy is set towards a steep 3,8% recession, that is, the worst in a century. Russia is also expecting recession, albeit not that steep.

In 2015, the IMF projected 3,8% growth for 2016; that was later revised to 3,4% before its second successive downward revision of 3,2% by the increasingly pessimistic Washington-based institution. Launching the report, the IMF’s chief economist, Maurice Obstfeld, spoke of increasing disappointment across all types of economies, mature and emerging.

There are two silver linings in this cloud. The first is India, which is still expected to remain fast-growing; a second one is China, whose service-economy transition appears to be somewhat offsetting losses in manufacturing exports, signaling a smoother than feared transition from an emerging to a mature economy.

Christine Lagarde described the state of the global economy as “the new mediocre,” pointing at growth that is “too slow for too long,” warning of further downward revisions.

https://neurope.eu/article/imfs-world-economic-outlook-even-slower-growth/