IMF World Economic Outlook – January 2015 Update

(CC)IMF / FlickrThe IMF has just published the World Economic Outlook (WEO) January 2015 Update.

Four key developments have shaped the global outlook since the WEO October 2014 Update:

  1. Oil prices in US dollars have declined by about 55 percent since September. The decline is partly due to unexpected demand weakness in some major economies.
  2. While global growth increased broadly as expected to 3 ¾ percent in the third quarter of 2014, up from 3 ¼ percent in the second quarter, this masked marked growth divergences among major economies.
  3. With more marked growth divergence across major economies, the US dollar has appreciated some 6 percent in real effective terms relative to the values used in the October 2014 WEO. In contrast the euro and the yen have depreciated by about 2 percent and 8 percent, respectively, and many emerging market currencies have weakened.
  4. Interest rates and risk spreads have risen in many emerging market economies, notably commodity exporters, and risk spreads on high-yield bonds and other products exposed to energy prices have also widened.

Read the full World Economic Outlook January 2015 Update here(CC)IMF / Flickr.