IMF slashes global growth forecast for current, next year

KONFRONTASI - The International Monetary Fund (IMF) has slashed its forecast for global economic growth for the current year and the next, citing weakness in a number of major economies.

In its World Economic Outlook report released on Tuesday, the IMF lowered the projections it issued last October by 0.3 percentage point for each year, forecasting global growth at 3.5 percent in 2015 and 3.7 percent in 2016.

According to the IMF, the revision of the October 2014 forecast was due to slower growth in the eurozone, China, Russia and Japan, as well as reduced activities of oil-exporting countries.

Also on Tuesday, China's National Bureau of Statistics announced that the country's gross domestic product grew by 7.4 percent last year, the slowest since 1990.

The IMF has predicted in its report that China's economy, which is the second largest in the world, would grow by 6.8 percent this year and 6.5 percent next year.

The forecast cut comes as oil prices have plunged by over 50 percent since June of last year.[ptv]