WASHINGTON (AP) — The International Monetary Fund has cut its global economic growth forecasts for this year and next, mostly because of slower expansion in India, China, Brazil and other developing nations.
The international lending agency now forecasts the global economy will grow 2.9 percent this year and 3.6 percent in 2014. Both are 0.2 percentage point lower than its July forecasts.
The IMF also lowered its outlook for U.S. economic growth to 1.6 percent this year and 2.6 percent next year. That's 0.1 and 0.2 percentage point lower than in July, respectively.
The fund's forecasts assume the U.S. government would partially shut down but for only a short period. It warned that failure to raise the U.S. government's borrowing limit "could seriously damage the global economy."