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IMF Lowers Global Growth Forecast
The International Monetary Fund predicts the global economy will expand 3.5% in 2015, down from the 3.8% forecast it made in October.
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The International Monetary Fund predicts the global economy will expand 3.5% in 2015, down from the 3.8% forecast it made in October.
The Washington, D.C.-based IMF also lowered its growth outlook for 2016 to 3.7% from 4%. The 188-country organization says a weaker investment outlook will more than offset the stimulus of lower oil prices.
The fund expects growth in the U.S. to average more than 3% in 2015 and 2016. It expects economic expansion in the eurozone to be only 1.2% in 2015 and 1.4% in 2016.
Chief Economist Olivier Blanchard tells BBC News the possibility of deflation in the region isn't "the kiss of death." But he also cautions that deflation could trigger a new debt crisis in the region.
Blanchard notes that falling prices can be difficult for debtors because their revenue may decline but their debt payments will not.
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