Global economic growth will remain subdued this year, according to the International Monetary Fund, following a slowdown in the United States and Britain’s vote to leave the European Union.
In its World Economic Outlook for October, the IMF forecasts a slight pickup in 2017 and beyond, driven mainly by emerging-market strength.
What's more, he report highlighted the precarious nature of the recovery eight years after the global financial crisis. It raised the specter that persistent stagnation, particularly in advanced economies, could further fuel populist calls for restrictions on trade and immigration.
One IMF official said such restrictions would hamper productivity, growth, and innovation.
The world body said the global economy will expand 3.1% this year, unchanged from its July projection. Next year, growth will increase to 3.4% on the back of recoveries in major emerging market nations, including Russia and Brazil.
More telling, the IMF marked down its forecast for the United States this year to 1.6%, from 2.2% in July, following a disappointing first half caused by weak business investment and diminishing pace of stockpiles of goods. U.S. growth is likely to pick up to 2.2% next year as the drag from lower energy prices and dollar strength fades.
