The International Monetary Fund (IMF) has slashed its growth forecast for the global economy for the third time in less than a year as it predicted a “bumpier ride” for 2016.
A sharp slowdown of trade in China and a slump in commodity prices – such as oil and metals – were cited as key reasons for the gloomy outlook.
The IMF expects the world economy to grow by 3.4% this year and 3.6% in 2017, both figures 0.2 percentage points lower that its previous estimates made last October.
Markets rose as the global body called for policymakers to look for ways to bolster short-term demand.
The IMF’s latest World Economic Outlook came hours after China, the world’s second biggest economy, reported its weakest annual growth figure for 25 years.