IMF lowers global economic forecast amid slowdown of emerging markets

The International Monetary Fund (IMF) on Tuesday cut its growth forecast for the world economy to 2.9 percent in 2013, 0.3 percentage point lower than its July projection, due to growth slowdown in key emerging market economies. The Washington-based global lender also revised down its forecast for the world economic growth in 2014 to 3.6 percent, 0.2 percentage point lower than its July estimate. "Global growth is in low gear, the drivers of activity are changing, and downside risks persist," the IMF said in its latest World Economic Outlook (WEO) report. "China and a growing number of emerging market economies are coming off cyclical peaks. Their growth rates are projected to remain much above those of the advanced economies but below the elevated levels seen in recent years, for both cyclical and structural reasons," noted the flagship report of the IMF.