The International Monetary Fund (IMF) announced Tuesday that the global economic growth has declined for three consecutive time this year bearing more downside risks and uneven recovery compared to July forecasts. 

IMF's head of Research Department Olivier Blanchard attributed the setbacks to slow-paced global market activities for the first half of 2014.  Numbers show that the world economy is expected to grow by 3.3 percent this year and 3.8 percent in 2015, with a minimal difference of 0.1 and 0.2 points respectively.

Like Us on Facebook

Based on the recent World Economic Outlook, growth and recoveries will be more country-specific at least in the next two years.  GDPs for advanced economies are projected to be up by 1.8 percent in 2014 and 2.4 percent in 2015.

Emerging markets, on the other hand, will continue to take a substantial part of the of the world economy despite a slight change resulting to a 4.4 percent and 5 percent growths in 2014 and 2015.

China's economy is expected to grow significantly, though statistics reveal minor rate declines.  Blanchard said that its market recalibration is likely to yield lower growth though this is still viewed as a healthy development.

IMF also warned China on vulnerabilities on its real estate market saying that industries relying on credit and investment are more likely to tread on unchanging waters.

According to Washington-based institution, United States and United Kingdom will lead the global wealth with continuous recovery.  UK, the largest economy, can expand at a rate of 3.1 percent next year.  Forecasts show that China and India will have the fastest and most aggressive growths, while Latin America and Caribbean countries remain stable.

Unfortunately, due to political tension against the U.S. and European Union, Russia's economy will hit 0.2 percent record low this year.  Overall, IMF cited that geopolitical clashes, monetary policy reforms in U.S., as well as China's rebalancing and market correction largely shape the global economy.

TagsInternational Monetary Fund, 2014 global economic forecast, Business Finance, International Economics