AKIPRESS.COM - The International Monetary Fund (IMF) on Tuesday (January 19) cut its global growth forecast for the third time in less than a year to 3.4 per cent in 2016 and 3.6 per cent in 2017, down by 0.2 per cent for both years. A sharper than expected slowdown in China, weak commodity prices affecting Brazil and other emerging markets, a further appreciation of the dollar, an escalation of ongoing geopolitical tensions are some of the risks tilted to the downside, according to the IMF.

The projections come weeks after the World Bank revised its global growth outlook downwards by 0.4 per cent to 2.9 per cent. However, growth estimate for India has been kept unchanged at 7.5 per cent in 2016-17. A year before, India grew at 7.3 per cent.

“India and the rest of emerging Asia are generally projected to continue growing at a robust pace, although with some countries facing strong headwinds from China’s economic rebalancing and global manufacturing weakness,” IMF said adding, “Deepening local capital markets, improving fiscal revenue mobilisation, and diversifying exports away from commodities are also ongoing challenges in many of these economies.”