In its latest World Economic Outlook, the organization said Tuesday that it now saw the global economy growing by only 3.2 percent this year — 0.2 percentage points down on its January forecast, 0.4 percentage points lower than its estimate from October 2015 and 0.6 percent points down on its forecast from July.
In an interview with CNBC, Maurice Obstfeld, IMF Chief Economist talked on why forecast on China‘s gross domestic product (GDP) for 2016 was left unchanged at 6.3 percent and not reduced further.
The Fed has made clear that it could undertake its first rate hike in more than nine years as soon as December, a move it has repeatedly put off as US and global economic growth has remained tepid.
While retaining his Sensex fair value target of 28000 by March, Saurabh Mukherjea, CEO of institutional equities at Ambit Capital, cautioned that the index slipping to 22000 is a distinct possibility.
The IMF official said that such "big effects" are not seen in the US or the UK.; the Chinese economy is rebalancing from exports and public investment to consumption, from manufacturing to services.