IMF lowers 2015 global growth forecast to 3.3pc

WASHINGTON, July 9                      

The International Monetary Fund (IMF) lowered its 2015 global economic growth forecast today, warning of the risk of 'financial stress' in Europe from the Greek debt crisis.

The IMF said the world economy would grow 3.3 per cent this year, less than the 3.5 per cent pace it had forecast in April and slightly slower than the 3.4 per cent growth in 2014.

Greece’s debt crisis, which could force it to abandon the euro, for the moment only was having a marginal effect on the expansion of the global economy, the IMF said.

The institution left unchanged its forecasts for the eurozone at 1.5 per cent, and for the two largest economies: Germany (1.6 per cent) and France (1.2 per cent).

“Developments in Greece have, so far, not resulted in any significant contagion. Timely policy action should help to manage such risks if they were to materialise,” the IMF said.

But the recent rise in interest rates on the sovereign bonds in some euro area economies could signal larger problems ahead. “Some risks of a reemergence of financial stress remain,” it said.