Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

IMF cuts economic forecasts for U.S.

By Annalyn Censky, staff reporter


NEW YORK (CNNMoney) -- The global recovery is moving at two speeds, with emerging countries like China still expanding rapidly as advanced economies like the United States grow at a snail's pace.

"The pace of activity remains geographically uneven, with employment lagging," the International Monetary Fund said in the first two chapters of its World Economic Outlook, released Monday.

Overall, the IMF kept its forecast for worldwide economic growth unchanged at 4.8%, but lowered its estimates slightly for many of the world's largest developed countries.

Citing weak real estate markets and high unemployment, the IMF cut its forecast for U.S. economic growth to 2.8% this year, down from the 3% rate it predicted just three months ago. The IMF also lowered forecasts for the United Kingdom and Japan.

When lumped together, advanced economies are expected to grow at a 2.4% rate in 2011, and 2.6% in 2012. Meanwhile, emerging markets are predicted to grow 6.5% both this year and next.

The so-called BRIC countries -- Brazil, Russia, India and China -- remain the leaders of emerging markets, far outpacing growth in the developed world.

China's forecast stays at a breakneck speed of 9.6%, while India's was lowered slightly to a still-rapid 8.2%.

Russia's growth forecast was boosted to 4.8% and Brazil's remained unchanged at 4.5%. To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.41%3.40%
15 yr fixed2.69%2.68%
5/1 ARM2.83%2.86%
30 yr refi3.42%3.43%
15 yr refi2.70%2.71%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 18,395.40 -53.01 -0.29%
Nasdaq 5,218.92 6.71 0.13%
S&P 500 2,169.04 -3.43 -0.16%
Treasuries 1.64 0.06 3.68%
Data as of 2:54pm ET
Company Price Change % Change
Bank of America Corp... 15.79 0.26 1.67%
Chesapeake Energy Co... 6.40 0.07 1.11%
Freeport-McMoRan Inc... 10.89 -0.20 -1.80%
Apple Inc 106.94 -0.63 -0.59%
Micron Technology In... 16.51 0.31 1.91%
Data as of Aug 26
Sponsors

Sections

On Friday Janet Yellen reiterated again that the government has to spend more during crises. Both Hillary Clinton and Donald Trump want to boost spending. More

Michigan could become first state to allow self-driving cars to take to the roads without a human driver ready to take control. More

Tesla started building its massive Gigafactory in June 2014. Since then, home prices in the nearby market have risen faster than the national average. More