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IMF cuts 2016 global growth outlook to 3.4% from 3.6%

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - In its latest World Economic Outlook report published on Tuesday, the Washington-based International Monetary Fund (IMF) slashed global growth forecasts from to 3.4% from 3.6% on China headwinds.

    Key Headlines:


    IMF cuts 2016 U.S. growth forecast to 2.6 pct from 2.8 pct

    Brazil, Russia to remain in recession in 2016

    Brazil, Russia and Saudi Arabia have been badly affected by the falling oil price

    European growth is expected to be 1.7% in 2016, an upward revision of 0.1 percentage points on October, with no change to the 1.7% predicted for 2017

    The UK growth forecasts of 2.2% in 2016 and 2017 – unchanged

    Downside risks include faster China slowdown, further Dollar appreciation, higher risk aversion

    After the release of their latest report, IMF’s chief
    economist Maurice Obstfeld noted:

    U.S. FED rate hike was based on forecast of strong U.S. growth, inflation rising

    Incoming data suggests U.S. recovery weaker than Fed forecast

    Bank of England will not be in a rush to raise rates without strong evidence of tightening labour market

    Markets are reacting strongly to small bits of evidence

    Falling oil prices help consumers and is not an unmitigated negative

    IMF doesn't see some of the extreme downside scenarios that the markets seem to be factoring in
    For more information, read our latest forex news.
     

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