IMF cuts global economic growth forecast

Lowered economic expectations in the U.S. and Europe are leading to lower forecasts for global economic growth in 2013.

The International Monetary Fund lowered its expectations for global economic growth in 2013. The organization cut its forecast to 3.3 percent growth, down from 3.5 percent in January, saying, "the road to recovery remains bumpy and uneven for advanced economies."

While growth is expected in the United States the same can't be said for the eurozone.

"Over the past six months, policy actions have diminished risks of an acute crisis in both Europe and the United States, although the baseline outlook for these two regions diverges: in the euro area, balance sheet repair and still tight credit conditions continue to weigh on growth prospects, whereas underlying conditions in the United States are more supportive of recovery, even with the sequester inducing a larger-than-expected fiscal consolidation," the report said.

IMF forecasts GDP growth of 1.9 percent in the U.S., less than last year's growth of 2.2 percent and January estimates of 2.1 percent, but much better than the -0.3 percent expected in the eurozone. Meanwhile emerging and developing economies continue to drive global economic growth. The report says those economies together will grow at 5.3 percent in 2013.

Read the full report.

Map: IMF

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