Global economic prospect growth is expected to drop by 3.1% in 2016 and 3.4% in 2017 due to the sluggish economic growth in developed countries.
Maurice Obstfeld, Economic Counsellor and Director of the Research Department in IMF, said the forecast is similar to the projection in July when UK decided to withdraw from European Union.
In the medium term, IMF expected growth in developed countries to remain lackluster and higher growth rate in developing countries. However, economic growth in developed countries will be stabilized and improved in long term.
Obstfeld said U.S economic growth is worse than Europe and Japan. The developing countries in Asia will give better performances, while countries in Africa are not affected by the weakening commodity prices.
“Compared with the average from 1998 to 2007, the potential of long-term economic growth across the region is projected to be lower. The decline reflects on the unsustainable demographic and development trend,” said Obstfeld. (*)
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