The International Monetary Fund has lowered its forecast for global economic growth in 2015. As Katie Gregory reports it's called for governments and central banks to pursue accommodative monetary policies and structural reforms to support growth.
Suffering under the weight of plummeting oil prices and weak currencies... economies are struggling to expand in these turbulent times. So it comes as no surprise the International Monetary Fund has cut its global growth forecast by 0.3% to 3.5%. And the falls keep coming…the price of Brent crude dropped even further toward $48 a barrel after the IMF's announcement. But it's not all doom and gloom, Justin Urquhart Stewart is from Seven Investment Management. SOUNDBITE (English) JUSTIN URQUHART STEWART, SEVEN INVESTMENT MANAGEMENT, SAYING; "The big message from this, is actually the global economy is growing at around about the long-term average. Which considering what's happened to the globe over the last few years, isn't that bad. However, the impact you're seeing of falling commodity prices including crude is now having an impact on this. But that's a short-term impact because the other side of that is actually good for growth, but you won't be seeing that yet." The combination of oil prices and a faltering currency caused by the sanctions over Ukraine, has seen Russia suffer the sharpest downgrade of all. Its economy is expected to shrink by 3% this year. And with the IMF predicting a further slowdown in the euro zone, the fund has sent a warning to governments and central banks - put in tougher monetary policies - now. Swaha Pattanaik is from Reuters BreakingViews. (SOUNDBITE) (English) REUTERS' BREAKINGVIEWS, COLUMNIST, SWAHA PATTANAIK, SAYING: "I think central banks are probably running out of room they've come as close to zero and some of them are at zero. They're probably going to have to do quantitative easing in the euro zone and have already launched it in Japan. It's probably more up to governments now to play their role after having gone into austerity mode for a long time after the crisis to get their balance sheets back in good form." A positive sign for Germany's balance sheet, investor sentiment jumped for the third month in a row. Boosting hopes of a rebound in Europe's largest economy and boosting confidence in the euro zone as a whole.