IMF cuts global growth forecast due to commodity slump

The International Monetary Fund trimmed its forecast for the world economy as a result of slower growth in some large emerging-market economies and oil-exporting countries.

Global GDP was now seen expanding at a 3.1% pace in 2015 instead of the 3.3% it projected in its July World Economic Outlook.

The largest cuts were made to its forecasts for Brazil and Russia, although its view on China was unchanged.

The Fund marked down its forecasts for GDP growth in the former in 2015 and 2016 by 1.5 and 1.7 percentage points, respectively, to -3% and -1%.

Russia was also seen suffering a deeper downturn in 2015, with its economy expected to shrink by 3.8%, almost half a percentage point more than previously expected.

China’s economy on the other hand was still seen expanding by 6.8% and 6.3% in 2015 and 2016.

The Washington-based lender also lowered its outlook for Canadian GDP, forecasting an expansion of 1% this year, instead of the 1.5% previously expected.

The outlooks for Latin America and the Caribbean and Sub-Saharan Africa this year and next were also revised lower.