In its latest forecast, the International Monetary Fund says it sees global growth essentially moving sideways this year, with flat to slower growth in richer countries offsetting higher growth rates in emerging economies such as India.
The report comes ahead of the semiannual IMF and World Bank meeting set to kick off at the end of the week in Washington, D.C., where officials will discuss how economic policy might juice up their respective economies.
The IMF cut its economic outlook for the U.S. to 1.6 percent growth this year, down from 2.2 percent, citing weak business investment and lower demand for goods. It also cautioned the Federal Reserve to hold off raising benchmark interest rates until it sees "clear signs that wages and prices are firming durably."
The forecast for overall global growth stayed at 3.1 percent for the year.
Advanced economies are expected to grow 1.8 percent next year, compared with 1.6 percent this year. Among other details in the report:
Emerging economies are expected to show a slightly higher growth rate, from about 4.2 percent this year to 4.6 percent next year. A notable exception is China's economy, the world's second-largest, which is projected to keep slowing — 6.9 percent last year to 6.6 percent this year to 6.2 percent next year.
The report adds that:
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