WASHINGTON — The International Monetary cut its forecast for global and U.S. economic growth in 2016.
Citing weakness in the developing world, the IMF says the world economy will grow 3.4 percent, down from an October forecast of 3.6 percent. The international lending agency downgraded the outlook for developing economies to 4.3 percent growth from a forecast of 4.5 percent in October.
The world economy grew 3.1 percent and developing economies 4 percent in 2015. Both figures were the weakest since the recession year 2009. Falling commodity prices have hurt countries that export raw materials.
The IMF trimmed its forecast for U.S. economic growth to 2.6 percent this year from 2.8 percent, noting the prospect of higher American interest rates. It kept its 2016 forecast for China's economy unchanged at 6.3 percent.