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March 1, 2021
Business International News

Global Growth Forecast Cut

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by Marie Kauna – EMTV Online, Port Moresby

According to World Economic Outlook forecasts from July, global economic forecasts were projected to be 3.3 per cent for this year, and 3.8 percent for 2016.

With stumbling economic waves hitting global economies, reports continue to flood in daily on economic related problems including unstable global stock markets, changing commodity prices and slowing economic performance for some countries.

Based on this weak and unstable economic performance, the International Monetary Fund (IMF) has cut down the July predicted forecasts from 3.3 per cent to 3.1 per cent for this year and 3.8 down to 3.6 per cent for 2016.

Possible indicating factors includes declining prices of oil exports, lower commodity prices, emerging and developing economies and a Chinese economic transition.

Outcomes from these factors undermine the financial stability for both the slower and emerging economies, and the commodity exporting countries, which undermines their economic performances and in a wider range, can affect the global economic growth.

Apart from this, China’s slowdown also adds weight to the unstable global economic growth performance and as a result, forecasts are not stable and promising.

Despite its main forecast for growth to pick up next year for these emerging economies, the IMF is still predicting growth to occur. 

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