The IMF lowered its forecast for global economic growth yesterday from a +4.0% estimate previously made in July, to +3.8%.

The organization said that, “World growth is mediocre and a bit worse than forecast in July,” despite improvements in the UK and United States economies. The IMF said that the U.S. is “leaving the financial crisis behind and achieving decent growth.”

The gains in the U.S. and UK are simply not enough to offset lower growth from emerging markets and continued weakness in the Eurozone.

IMF LogoIMF Chief Economist, Olivier Blanchard said that, “The recovery continues, but it is weak and uneven,” he continued, “Some countries have recovered or nearly recovered, but others are still struggling.” The forecast for U.S. growth was upwardly revised from +1.7% in July to +2.2%, while the UK’s forecast is for growth of +3.2% this year. “Even for them, however, potential growth is lower than it was in the early 2000s,” Blanchard noted.

The Eurozone economy was forecast to grow +0.8% this year, down from a July estimate of +1.1%, with the forecast for Japan also downgraded from + 1.1% to + 0.8%. Chinese growth was still high however, at +7.4%, the same as forecast in July.

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