IMF World Economic Outlook – October 2014 Update

IMF CoverThe IMF has just released the latest World Economic Outlook(WEO), “Legacies, Clouds, Uncertainties.”

According to the report a weak and uneven global economic recovery continues, but reflecting different evolutions across various countries and regions.

The IMF growth forecasts for the world economy has been revised downward to 3.3 percent for this year, 0.4 percentage point lower than in the former WEO. The global growth projection for 2015 was also lowered to 3.8 percent.

Downside risks have increased since the spring. Shortterm risks include a worsening of geopolitical tensions and a reversal of recent risk spread and volatility compression in financial markets. Medium-term risks include stagnation and low potential growth in advanced economies and a decline in potential growth in emerging markets.

In advanced economies, this will require continued support from monetary policy and fiscal adjustment attuned in pace and composition to supporting both the recovery and longterm growth.

In emerging markets, the scope for macroeconomic policies to support growth if needed varies across countries and regions, but space is limited in countries with external vulnerabilities.

Download the IMF WEO October 2014 update here.