IMF reduces its forecast for US economic growth this year

The report projects further deterioration in petroleum-rich Venezuela, where gross domestic product declined 6.2 percent past year and is on course to fall another 10 percent in 2016 “as the decline in oil prices since mid-2014 has exacerbated domestic macroeconomic imbalances and balance of payments pressures.”.

The IMF marked down its forecast for the United States this year to 1.6 percent, from 2.2% in July, following a disappointing first half caused by weak business investment and diminishing pace of stockpiles of goods.

The downgrade in the U.S. forecast came after "a disappointing first half caused by weak business investment and diminishing pace of stockpiles of goods", the International Monetary Fund said.

China has made significant progress in shifting its economy towards services and consumption, said Obstfeld, adding that China needed to address medium-term risks, such as excess capacity and shadow banking.

In its fresh issue of World Economic Outlook, the International Monetary Fund has upgraded outlook for Armenia's economic growth in 2016 to 3.2% and in 2017 to 3.4%.

The drag from a stronger dollar and lower energy prices should fade by next year.

The IMF said its 2017 forecast for both groups was unchanged, with advanced economies forecast to grow 1.8 percent and emerging markets growing 4.6 percent. Advanced economies are predicted to grow by 1.6 per cent this year and 1.8 per cent the next, while emerging market and developing economies are expected to grow by 4.2 per cent this year and 4.6 per cent the next.

The increasing skepticism toward foreign trade and worldwide institutions in developed economies is a "worrisome" trend that could stall growth in the global economy, the worldwide Monetary Fund said Tuesday.

"Excessive private debt is a major headwind against the global recovery and a risk to financial stability", IMF Fiscal Affairs Director Vitor Gaspar told reporters in Washington. But that's still tepid and down 0.3 percentage points from the July estimate. The forecast was lowered from 0.5% in April.

However, the organisation still believes that the United Kingdom will suffer from the EU referendum result, cutting its projection for 2017 growth down to 1.1% - half the rate it predicted before the June EU referendum vote - as talks about separation from the bloc weigh down on investment in the country. Unemployment rate in Kazakhstan will remain at 5 percent level in 2016 and 2017 as it was in 2015.

China's total debt hit 168.48 trillion yuan ($25 trillion) at the end of past year, equivalent to 249 percent of national GDP, the Chinese Academy of Social Sciences, a top government think tank, has estimated.

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