IMF Lowers Global Growth Forecast Again

The International Monetary Fund says the pace of global economic growth is “increasingly disappointing,” especially among developing markets, and has lowered its outlook for the second time this year.

The Washington, D.C.-based group warns that any further slowdown could increase the likelihood of new financial shocks ahead. The organization continues to urge the central banks of its 188 member nations to continue stimulating their economies.

The IMF’s latest World Economic Outlook report, subtitled “Too slow for too long,” predicts the world economy will expand 3.2% this year and 3.5% in 2017, down from the rates of 3.4% and 3.6%, respectively, it estimated three months ago.

At this time last year the organization predicted 3.8% global growth in 2016. Continuing downward pressure on oil prices has been a major factor for the adjustments.

The IMF lowered its expansion outlook from 2.1% to 1.9% for the U.S. and cut its growth forecast for Japan to 0.5% from 1.0%. But it raised its expected growth rate for Chia to 6.5% from 6.3%.