IMF trims global growth outlook, warns of eurozone stagnation

Washington

THE International Monetary Fund (IMF) cut its global economic growth forecasts for the third time this year on Tuesday, warning of weaker growth in core eurozone countries, Japan and big emerging markets like Brazil.

In its flagship World Economic Outlook report, the Washington-based body cut its expectations for global growth to 3.3 per cent for this year and 3.8 per cent for next year. The IMF in July had expected economic growth of 3.4 per cent in 2014 and 4 per cent in 2015.

The IMF has now cut its current-year growth forecasts nine out of 12 times in the last three years, as it consistently overestimated how quickly richer countries would be able to pull free from high debt and unemployment in the wake of the global financial crisis in …