The International Monetery Fund (IMF) is warning that the world faces a “mediocre era” of low growth for a long time, according to the Financial Times.
IMF managing director Christine Lagarde also signaled cuts to the global outlook for 2015.
Lagarde said the global economic recovery is “brittle, uneven and beset by risks”, highlighting a weakening global outlook as a slowdown in emerging economies also spreads to advanced countries.
“Overall, the global economy is weaker than we had envisaged even six months ago,” Lagarde told an audience at Georgetown University on Thursday.
“Only a modest pickup is foreseen for 2015 as the outlook for potential growth has been pared down.”
The IMF’s most recent forecasts in July called for global growth of 3.4 per cent this year and 4 per cent in 2015 but those numbers are likely to be slashed when the it releases its new estimates next week.
Among advanced economies, Lagarde expects the strongest growth in the United States and Britain and the weakest expansion in the eurozone.
She said that emerging economies will remain the main source of global growth but at a slower pace.
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