In its latest World Economic Outlook (WEO), the IMF forecast global growth of 3.1 percent this year and 3.6 percent in 2016. Global real GDP grew at 3.4 percent last year. "Six years after the world economy emerged from its broadest and deepest postwar recession, the holy grail of robust and synchronised global expansion remains elusive," said Maurice Obstfeld, IMF Economic Counsellor and Director of the Research Department.
    
"Despite considerable differences in country-specific outlooks, the new forecasts mark down expected near-term growth marginally but nearly across the board. Moreover, downside risks to the world economy appear more pronounced than they did just a few months ago," he added.
    
First, China's economic transformation away from export and investment led growth and manufacturing, in favour of a greater focus on consumption and services; second, and related, the fall in commodity prices; and third, the impending increase in US interest rates, which can have global
repercussions and add to current uncertainties.
    
Growth in advanced economies is projected to increase modestly this year and next. This year's pickup reflects primarily a strengthening of the modest recovery in the euro zone and a return to positive growth in Japan, supported by declining oil prices, accommodative monetary policy, and improved financial conditions, and in some cases, currency depreciation, it said.
    
While growth prospects in emerging markets and developing economies vary across countries and regions, the outlook in 2015 is generally weakening, with growth for these economies as a group projected to decline from 4.6 percent in 2014 to 4 percent in 2015.

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