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3rd LD Writethru: IMF projects global economy to grow 3.5 pct in 2015

Xinhua, April 14, 2015 Adjust font size:

The International Monetary Fund (IMF) said Tuesday that the global economy is estimated to grow 3.5 percent in 2015, on par with the forecast it made in January.

The growth rate is expected to pick up to 3.8 percent in 2016.

The outlook reflects an increase in growth in advanced economies but is offset by a decrease in growth in the emerging markets and developing economies, the Washington-based lender said in its biannual World Economic Outlook (WEO) report.

"Several advanced economies and some emerging markets are still dealing with crisis legacies, including persistent negative output gaps and high private or public debt or both," the report said.

"Global growth remains moderate, with uneven prospects across the main countries and regions," it said.

Growth in the United States is projected to hit 3.1 percent in 2015, with domestic demand supported by lower oil prices, more moderate fiscal adjustment and continued support from an accommodative monetary policy stance.

The euro area is showing signs of picking up, supported by lower oil prices, low interest rates and a weaker euro. After a disappointing 2014, growth in Japan is also projected to pick up, sustained by a weaker yen and lower oil prices.

China is expected to see growth ease to 6.8 percent in 2015 and 6.3 percent in 2016. Last year, its growth rate stood at 7.4 percent.

The IMF warned the distribution of risks to global growth is now more balanced relative to the end of last year, but still tilted to the downside.

Geopolitical tensions could intensify and disruptive asset price shifts in financial markets remain a concern. A stronger dollar could trigger financial tensions elsewhere, and the risks of stagnation and low inflation in advanced economies are still present.

WEO is the flagship report of the IMF. It was released prior to the Spring Meetings of the IMF and the World Bank, scheduled to be held during April 17-19 in Washington D.C., gathering central bank governors, finance ministers and scholars to discuss key global economic issues and policy action. Endi