IMF warns of downside risks amid uneven global recovery

In its updated economic outlook, the Washington-based institution expected the global economy to grow 3.3 percent in 2014 and 3.8 percent in 2015, down 0.1 percentage point and 0.2 percentage point from its July's forecasts respectively, Xinhua reports. The growth forecast cut was "largely due to weaker-than- expected global activity in the first half of 2014," the IMF said in its World Economic Outlook, adding that an uneven global recovery continues despite setbacks and the pace of recovery is becoming more country specific. The IMF expected growth in advanced economies to be 1.8 percent in 2014, the same with its forecast in July, but lowered the 2015 growth rate forecast to 2.3 percent from July's 2.4 percent. Growth in emerging markets was projected to reach 4.4 percent in 2014 and 5 percent in 2015, and both were slightly revised down from July's forecast. Even with the downgrade, emerging market and developing economies would continue to account for the "lion's share" of global growth, said the IMF. The global lender kept its forecast for China unchanged at 7.4 percent in 2014 and 7.1 percent in 2015, but lower than its April predictions. "China is maintaining high growth, and its rebalancing is likely to imply slightly lower growth, but this must be seen as a healthy development," said IMF chief economist Olivier Blanchard at a press conference here on Tuesday.