Belfast Telegraph

Falling commodity prices led IMF to cut growth forecasts

By Roger Baird

Slowing growth in China and falling commodity prices have led the International Monetary Fund (IMF) to cut its growth forecasts to their lowest level in six years.

In its latest World Economic Outlook, the IMF predicted world growth of 3.1% this year, from its previous projection of 3.3%.

The Washington-based fund said a combination of Chinese slowdown, sliding commodity prices and uncertainty over when the US hikes interest rates would lead the world to its lowest annual growth rate since 2009.

The fund increased its forecast for UK growth this year by 0.1% to 2.5% from July, and next year it kept its expectation of 2.2% growth unchanged.

The latest forecast from the Office for Budget Responsibility for UK growth has slightly revised down the expectation for 2015 to 2.4% from 2.5%, due to lower-than-expected growth in the first quarter of the year.

But the IMF said that this would still make the UK the second-fastest growing country in the G7 group.

Belfast Telegraph