U.S. ECONOMICS: IMF Downgrades Global Growth as Expected
The International Monetary Fund downgraded global growth to 3.4% in 2014 from 3.7% estimated in its April review. That's a change in line with its cut of U.S. growth estimates Wednesday, when it warned of risk of stagnation in advanced economies over the long term. The IMF did retain its 4.0% estimate for 2015, however.
The IMF lowered estimates for advanced economies to 1.8% in 2014 from 2.2%, while trimming emerging market growth to 4.6% from 4.8%. It concludes that geopolitical risks are higher now due to the Mid-east and Ukraine, while monetary policy should remain accommodative in all major advanced economies.