IMF cuts global growth forecast as capital outflows hit EM economies

Olivier Blanchard

The International Monetary Fund has again cut its global growth forecasts in its latest World Economic Outlook (WEO) report, published today, and warned many developing economies now "face a trade-off between macroeconomic policies to support weak activity and those to contain capital outflows".

The IMF said "global growth is projected to remain subdued at slightly above 3% in 2013" – 25 basis points lower than forecast in the April WEO. It noted that slower growth was prompted by "weaker domest

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