The International Monetary Fund on Tuesday downgraded its outlook for global economic growth, citing persistent weakness in the eurozone and a broad slowdown in several major emerging markets, the Wall Street Journal reported.
The IMF said it expects the global economy to grow by 3.8 percent next year, down from its July forecast of 4 percent, though still better than this year’s estimated pace of 3.3 percent.
The IMF marked down prospects in the eurozone’s three largest economies, Germany, France and Italy, which the fund says is headed into its third consecutive year of recession.
The fund warned that the probability of the eurozone re-entering a recession in the next six months has roughly doubled since its April outlook to 38 percent. It also sees disappointing output in Japan and a lower growth trajectory for several major developing economies, including Brazil and Russia.
Those setbacks more than offset signs of a strengthening recovery in the US, the world’s largest economy, as well as small gains in Spain, Canada and Mexico.
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