IMF (International Monetary Fund) cuts global growth rate again. Now this apex body of the financial movement of world has expected the global growth rate of 3.5% compared than the earlier prediction of 3.8%.
IMF Cuts Global Growth Forecast, Why?:
IMF cuts global growth rate on an average due to lack of improvement in oil price. Price of the crude oil is going down day by day and it may cause a good favor to the emerging economies like India and China.
Growth Rate in Euro Zone:
Sharp fall of crude oil price may cause a deflation in Euro zone. But it is expected that Euro zone will recover the situation and will grow at 1.3% in this year.
Growth of USA:
Growth of the United States of America has also cut to the 3.6% for this year as it is also in the price crisis of crude oil with the OPEC. Though the expected growth of the expansion of American economy is downgraded, in 2016 US is expected to come up from the current situation.
China will continue its growth as well this year also. IMF is very positive that China will tag a growth of 7% despite of slow growth of World economies. Sharp fall in crude oil price will become a boon for it and it will expand its export.
Growth of African Zones:
Boko-Haram affected Nigeria has shown a good sign of growth. IMF expecting that this African oil exporting country will register a good growth, about 5.6% in this year. And if it could recover the situation created by Boko-Haram, it will run as faster as China.
Growth of UK:
Another European country, United Kingdom is very hopeful that they will make a change of 2% -3% growths in their economy this year as well. But stick fall of oil price in international market is also a big concern for it as it would cause a deflation in economy.
IMF (International Monetary Fund) does growth prediction of world economy and monetary ratings in several fields of International finance and the other things every year. This year IMF cuts the growth rate of global economy to 3.5% from its early prediction of 3.8% for the year of 2015.