By MARTIN LUTHER OKETCH
KAMPALA : The International Monetary Fund (IMF) has cut global economic growth to 3.1 per cent, down from the July forecast of 3.3 per cent.
The decline reflects a further slowdown in emerging markets and a weaker recovery in advanced economies.
In its new World Economic Outlook (WEO) report, the fund said it is now projected that global economic growth will be at 3.1 percent for 2015 as a whole, slightly lower than in 2014, during which the global real Gross Domestic Product grew by 3.4 per cent.
The impact of decline in global economic growth is being felt in all the IMF 188 member countries including Uganda.
The fund explains that the impact of global economic slowdown is affecting countries in form of slower economic growth, low commodity prices in the international market, low capital inflows and out flow of capital especially in low income developing countries.
“Prospects across the main countries and regions remain uneven. Relative to last year, growth in advanced economies is expected to pick up slightly, while it is projected to decline in emerging market and developing economies,” the report said.
It added: “With declining commodity prices, depreciating emerging market currencies, and increasing financial market volatility, downside risks to the outlook have risen, particularly for emerging market and developing economies.”
Advanced economies. The growth is projected to increase modestly to 2 percent this year and 2.2 percent next, supported by declining oil prices, accommodative monetary policy, and improved financial conditions, and in some cases, currency depreciation.
Emerging markets.The outlook is projected to improve: in particular, growth in countries including Brazil, Russia, and some countries in Latin America and in the Middle East.
Low income countries. Growth is expected to slow down to 4.8 percent in 2015, from 6 percent in 2014, partly due to weak commodity prices and the prospect of tighter global financial conditions. For this year, the IMF projects growth for sub-Saharan Africa at 3.8 per cent down from 5.0 per cent in 2014. budgeted for and whethof BCU without the board’s approval.