IMF cuts 2015 global growth forecast to 3.3%

The International Monetary Fund lowered its global growth forecast for 2015 to 3.3 percent

Thursday, citing weaker than expected economic gains in the United States and North America.

The latest estimate is down from 3.5 percent growth predicted by the Washington-based fund in April. It is also below the 3.4 percent growth reached last year, a sign of challenges weighing

down the worldwide economy.

The World Economic Outlook Update report showed consumer prices among advanced economies standing at zero percent annually, down from 0.4 percent growth estimated in April. For emerging markets, inflation is expected to reach 5.5 percent, or down 0.1 percentage point from the previous estimate.

While advanced economies may be able to grow steadily, there are growing downside risks, like greater volatility in the financial market and slower growth for China, according to the report.

The IMF did not release an updated growth forecast for South Korea this time around. In April, it predicted South Korea to expand 3.3 percent on-year in 2015.

The global lending agency cut its 2015 growth outlook for advanced economies from 2.4 percent to 2.1 percent, with the estimate for emerging markets dipping to 4.2 percent from 4.3 percent.

U.S. growth is expected to dip to 2.5 percent annually this year from 3.1 percent as predicted earlier. Canada's growth has been marked down to 1.5 percent from 2.4 percent.

Growth for the 19-member eurozone, including Germany and France, is expected to remain unchanged at 1.5, with Japan's GDP forecast to grow 0.8 percent this year, down from 1 percent.

The IMF said China, the world's No. 2 economy, should be able to pull off 6.8 percent growth, unchanged from its assessment reached in April, with numbers for India also standing steady at 7.5 percent.

The report said Russia's economy may contract 3.4 percent on-year, instead of 3.8 percent as predicted in April, with Brazil to post minus growth of 1.5 percent.

For 2016, the report said the global economy should move up 3.8 percent with consumer prices rising 1.2 percent in advanced economies and 4.8 percent in emerging markets. (Yonhap)