Economy -- October 9, 2013 at 2:10 PM ET
IMF projects slowed growth for global economy
The International Monetary Fund's latest projections for the global economy expects a 2.9 percent growth this year, a drop from the 3.2 percent the organization estimated in July. The 2014 global growth has also been marked down to 3.6 percent, from 3.8 percent.
Neil Irwin, a columnist for the Washington posts, attributes this slow growth to "tepid U.S. growth, a stagnant European economy, and slowing emerging markets."
The U.S growth for 2013 is 1.6 percent while Russia, India and Mexico each saw a drop in their growth projections to 1.5 percent, 1.8 percent, and 1.7 percent respectively.
IMF researchers say U.S. projections are based on the assumption that an agreement to re-open the government will be reached shortly and Congress will vote to raise the debt ceiling.
"The government shutdown is bad enough, but failure to raise the debt ceiling would be far worse, and could very seriously damage not only the U.S. economy, but the entire global economy," said IMF director Christine Lagarde in a speech last week,