The International Monetary Fund (IMF) has cut its outlook for 2016 economic growth for the fourth time in the past year, citing low oil prices, China’s slowdown, and chronic weakness in advanced economies. The lender said it expected annualized global growth of 3.2%, down from 3.4% it predicted in January, International Business Times reported.
“Global growth continues, but an increasingly disappointing pace that leaves the economy more exposed to negative risks,” said Maurice Obstfeld, IMF Chief Economist, according to The Telegraph.
In fact, the IMF is increasingly worried that more countries could slip into recession. The downturn in Russia and Brazil is expected to be deeper than the Fund anticipated just three months ago, while many regions, including Latin America, Japan and the eurozone face increased risks of recession this year. In the US, the probability is now one in five.