IMF warns of stagnation threat to G7 economies
by Larry Elliott Economics editor from on (#PMEA)
Fund's latest World Economic Outlook cuts global growth forecasts saying emerging markets slowdown may entrench low inflation and promote stagnation in the west
The International Monetary Fund is warning that the weak recovery in the west risks turning into near stagnation after cutting its global economic growth forecast for the fourth successive year.
In its half-yearly update on the health of the world economy, the Washington-based fund predicted expansion of 3.1% in 2015, 0.2 points lower than it was expecting three months ago and the weakest performance since the trough of the downturn in 2009.
Related: A worried IMF is starting to scratch its head
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