The IMF lowered its economic growth projections for the third time this year, warning of weakness in core eurozone countries as well as Japan and emerging markets like Brazil. Bobbi Rebell reports.
The third time is not a charm. The International Monetary Fund cut its global economic growth estimates for the third time this year, warning of slower growth in core eurozone areas, Japan and in big emerging markets like Brazil. IMF Chief Economist Olivier Blanchard: SOUNDBITE: OLIVIER BLANCHARD, CHIEF ECONOMIST, INTERNATIONAL MONETARY FUND (ENGLISH) SAYING: "The recovery continues but it is weak and it is uneven." The new data, which roiled stock markets on Tuesday, showed the overall expansion forecast down to 3.3 percent for this year and 3.8 percent in 2015, dragged lower by weakness in some key economies. The United States showed a slight improvement, while the advanced economies remained unchanged to lower. China, a key driver for the global economy,- showed tepid growth. S&P Dow Jones's Howard Silverblatt: SOUNDBITE: HOWARD SILVERBLATT, SENIOR INDEX ANALYST, S&P DOW JONES INDICES (ENGLISH) SAYING: "China which is having difficulty with the 7.5 percent expected growth that they are officially still trying to keep, may not keep the mark, so the growth is down. Relative to the rest of the world, the U.S. is still looking better. Obviously, we are nowhere near the 7.5 percent that China is hoping to obtain, but the U.S. is still maintainting strong growth and has relative stability. So we are seeing more money come in" REPORTER BRIDGE: BOBBI REBELL, REUTERS CORRESPONDENT (ENGLISH) SAYING: And there is a sense that the positive sentiment tied to the richer economies, may be underestimated. Bill Adams, Senior International Economist, PNC Financial Services Group: SOUNDBITE: BILL ADAMS, SENIOR INTERNATIONAL ECONOMIST, PNC FINANCIAL SERVICES GROUP (ENGLISH) SAYING: "I think the IMF downgrade is taking into account that a number of trouble spots around the globe are growing more slowly this year than they had expected. But at the same time, we are entering into a period where the U.S., the U.K., Canada, Mexico, there are pockets of the global economy that are doing well, and are close to normal. So as parts of the global economy normalize you could see better business sentiment, better investor sentiment, more appetite for risk in the real economy, and that could lead to faster investment faster hiring and faster growth ." The projections set the stage for this week's global economic policymakers meetings in Washington DC.