The International Monetary Fund has reduced its world growth forecast to 3.5 percent this year, from 3.8 percent. Sluggish growth from China, Russia, the EU, and Japan won’t offset the benefits of cheaper oil.
The outlook for 2016 was also cut to 3.7 percent from four percent.
Here is the January 2015 report released on January 19.
The downward revisions were influenced by the worsening prospects in China, Russia, the EU, and Japan, with the last two posing the biggest threat to growth. The most severe cut was to Russia, whose economy will contract by three percent, according to the IMF, a huge departure from its previous 0.4 percent growth estimate. This economic uncertainty will spillover into CIS countries, which are closely tied to the Russian economy.