IMF cuts global growth forecast

So much for the recovery. The IMF has downgraded its most recent forecast of global growth from April due to appreciably weaker domestic demand and slower growth in several key emerging market economies.

China’s credit crunch, the Fed’s tapering talk and continued gloom in the eurozone also seem to have influenced the fund’s outlook, as it warned yesterday of new risks to global growth prospects in the form of a longer slowdown in emerging market economies.

Global growth increased only slightly from an annualised rate of 2.5% during the second half of 2012 to 2.75% during the first quarter of 2013, instead of accelerating further as...