IMF trims world growth forecast to 3.6% for 2014

 The International Monetary Fund (IMF) on Tuesday lowered its global economic growth forecas to 3.6 percent for 2014. In its updated economic outlook, the IMF expected the global economy to expand by 3.6 percent in 2014 and 3.9 percent in 2015 -- both down by 0.1 percentage point from its last predictions in January. "Global activity strengthened during the second half of 2013 and is expected to improve further in 2014-15," the IMF said in its World Economic Outlook, warning that downside risks continue to dominate the global growth outlook despite some pickup in advanced economies. Emerging market and developing economies must be ready to "weather market turmoil and reduce external vulnerabilities," it added. The IMF expected growth in advanced economies to be the same with its forecast in January, at 2.2 percent for 2014 and 2.3 percent for 2015. Growth in emerging markets was projected to increase from 4.7 percent in 2013 to 4.9 percent in 2014 and 5.3 percent in 2015, but both were slightly revised down from its last forecast. Emerging markets and developing economies continue to contribute more than two-thirds of global growth, said the IMF. The fund kept its forecast for China unchanged at 7.5 percent for 2014 and 7.3 percent for 2015. In its latest assessment of the global economy, the 188-member institution highlighted risks of persistent low inflation in advanced economies as well as capital flow turbulence and tightened external financial conditions for emerging markets.