The world economy will grow by just 3.5% in 2015, and by 3.7% in 2016, according to the latest estimate from the International Monetary Fund. Both estimates are down 0.3 percentage points from the group’s previous forecast, made in October.
The IMF estimates underscore the difficult set of choices facing policymakers around the world.
Yet growth remains limited. Even drastically lower oil prices will have limited impact on stimulating the overall economy.
“New factors supporting growth — lower oil prices, but also depreciation of euro and yen — are more than offset by persistent negative forces,” said IMF chief economist Olivier Blanchard.