IMF downgrades 2015 outlook for global growth to 3.3 per cent

Washington (AP) — The International Monetary Fund (IMF) says the US economy’s stumble at the start of 2015 is dragging down the world’s growth prospects.

In a report Thursday, the IMF forecasts 3.3 per cent global growth this year, down from the 3.5 per cent it predicted in April. The main culprit: The American economy, world’s biggest, shrank at a 0.2 per cent annual rate from January to March, hurt by nasty weather.

The IMF is cutting the outlook for US growth to 2.5 per cent in 2015, from April’s 3.1 per cent. The US economy grew 2.4 per cent in 2014.

America’s troubles pinched its neighbours. The IMF trimmed Mexico’s 2015 growth forecast to 2.4 per cent from 3 per cent and Canada’s to 1.5 per cent from 2.2 per cent.

The IMF expects global growth to improve to 3.8 percent next year.