IMF to lower global growth forecasts

BERLIN (Reuters): The International Monetary Fund will lower its forecasts for global economic growth to 3.3% this year and 3.6% in 2013 from earlier forecasts of 3.4% and 3.9% respectively, a Germany newspaper reported on Friday.

The IMF expects the euro zone economy to shrink by 0.4% this year and then grow 0.2% in 2013, business daily Handelsblatt said in a preview of the fund’s latest forecasts which are due to be released next week.

Chinese growth for 2013 is seen at 8.2%, versus a previous IMF estimate of 8.4%, Indian growth is seen at 6% versus a previous forecast of 6.6% and Brazilian growth at 4% versus 4.7%, the newspaper reported.  “The further cooling of global economic growth this year and next year is accompanied by a significant increase in downward risks,” it quoted the IMF as saying.

It added that the global growth outlook depended on “whether decisive political steps to stabilise confidence are taken in the euro zone and US”.