The International Monetary Fund has published updated forecasts for the global economy. It downgraded the global forecast to 3.8% from 3.5% just back in October.
But for the world’s No. 1 economy, the IMF actually significantly upgraded the forecast from 3.1% to 3.6% – a big move up.
Regarding the US, IMF managing direction Christine Lagarde recently said that oil prices as well as growth in the US “are not a cure for deep seated weaknesses elsewhereâ€.
The still loose monetary policy in the US and cheap oil support the economy of the United States according to the IMF.
China is expected to grow by 6.8%, down from 7.1% and emerging markets from 5% to 4.3%. Also forecasts for 2016 have been downgraded to 3.7% for the global economy.
Reductions have also been made to inflation numbers, with 1% expected for 2015.
With the euro-zone officially in deflation, the IMF certainly has advice for Draghi and wants a big QE program: “as large as what the market’s expectingâ€.
All eyes are on Mario Draghi.
