IMF forecasts uneven development for the global economy

BOFIT Viikkokatsaus / BOFIT Weekly Review 2015/16

In its latest World Economic Outlook (WEO) released this week, the IMF sees economic growth strengthening in advanced economies this year, while growth in emerging economies will slow for the fifth year in a row.

China’s stimulus policies have exerted a large influence on growth in other emerging economies since the international global financial crisis. The IMF says China should now focus on dealing with the fallout from its stimulus policies, including dealing with debt and other problems, as well as move ahead with reforms. As China’s growth continues to slow, it will depress commodity prices and slow the growth of commodity producers.

The IMF revised significantly downward from last October its growth projection for Russia. Factors for the increased pessimism include the collapse of global oil prices, the Ukraine crisis, on-going sanctions and the country’s structural weaknesses – all of which have eroded confidence in the Russian economy.

IMF forecasts of GDP growth, %, f = forecast
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Source: IMF World Economic Outlook, April 2015

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