Economy

The IMF expects global growth lower

WASHINGTON – The International Monetary Fund (IMF) has slightly reduced its outlook for global growth over the next two years, warning that the financial crisis in Europe and a slower expansion in China and India have weakened the global economy.

On Monday the IMF said on expect a growth in the global economy by 3.5 percent this year, according to a quarterly review of its prospects. In April, the agency predicted a growth of 3.6 percent.

The IMF also cut its outlook for the global economy to 3.9 percent in 2013 compared to 4.1 percent during the previous evaluation three months ago.

In regard to the United States, the growth forecast of 2 percent this year compared to 2.1 percent previously estimated. For 2013, the IMF raised its forecast from 2.4 to 2.3 percent.

The international agency said its projections depended on key parameters.

First, European legislators should respect the promises made at the summit in late June. At that time, the 17 eurozone leaders agreed to centralize the regulation of banks in Europe and expand the use of bailout funds.

Also, the Fund said that believes the U.S. should avoid non-renewal of large tax cuts and large tax cuts planned for early next year.

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