IMF again lowers global growth forecast

The International Monetary Fund (IMF) has lowered the global growth forecast, this time to 3.3 percent, for the third time this year.

It has also revised the 2015 growth forecast to 3.8 percent, a 0.2 percentage point decline from its July forecast.

It has made the new projections on its World Economic Outlook (WEO), published on its website on Tuesday.

The dismal global growth forecast is due to weak economic activities in the advanced economies and lesser-than-expected performance of economies in some emerging economies in the first half of 2014.

WEO says the US had a weak growth in the first quarter, Latin America had slower economic growth in the first half of the year, euro zone experienced stagnant growth.

China had weaker economic activity in the first quarter and the Japanese GDP contracted more than expected in the second quarter of 2014 after a rise in the consumption tax.

Since the paces of annual growth were being scaled down, they will have impact on today's investment and economic activity. Economic Counsellor and head of the IMF’s Research Department Olivier Blanchard said.

“Potential growth rates are being revised down, and these worse prospects are in turn affecting confidence, demand, and growth today."

On Sept 10, IMF's Deputy Managing Director Min Zhu hinted in a panel discussion on the global economic update at the World Economic Forum's (WEF) annual meeting of the New Champions, in Tianjin, China – also known as Summer Davos – that it would lower world economic growth forecast for 2014 on Oct 7.

The IMF had earlier revised its projection in July this year to 3.4 percent, marking a drop of 0.3 percentage point.