The International Monetary Fund cut its global growth forecast for the fourth time in the past year, citing China's slowdown, low oil prices, and economic weakness in advanced economies, like Japan. Bobbi Rebell reports.
The International Monetary Fund cut its global growth forecast for the fourth time in the past year. Its projections show the global economy will grow 3.2 percent in 2016, down from its 3.4 percent January forecast. IMF's chief economist, Maurice Obstfeld: (SOUNDBITE) IMF CHIEF ECONOMIST MAURICE OBSTFELD, (ENGLISH) SAYING: "Global growth continues but at an increasingly disappointing pace that leaves the world economy more exposed to negative risks." Among the top concerns: China, low oil prices, and chronic weakness in advanced economies- especially Japan. The report also warned of severe regional and global economic damage if the U.K. decides to leave the European Union. Even the United States, which is considered a relative bright spot in the global economy, saw its growth forecast cut to 2.4 percent from 2.6 percent. Reuters' David Gaffen: (SOUNDBITE) DAVID GAFFEN, REUTERS U.S. MARKETS EDITOR, (ENGLISH) SAYING: "It is not as if the U.S. is growing at some sort of gangbusters rate. It is just that it is going slowly along, continuing to expand. We are continuing to see job growth here in the United States. There is no concurrent path to higher inflation at the same time inflation is moving up at a slow rate. The expectations for a recession remain subdued." The IMF also pointed out "worrisome" political risks. It lists tension among some Middle East nations, the Ukraine- Russia conflict, and rising projectionist talk among politicians in the U.S. and Europe.