IMF cuts world economic growth forecast

The International Monetary Fund (IMF) has trimmed its forecast for global economic growth for this year and next year.

The IMF’s World Economic Outlook update predicted that the global economy would grow 0.1% less than anticipated in 2013 and 2014, by 3.5% and 4.1% respectively.

Much of the reduction stemmed from a weaker outlook for the eurozone.

“Policy actions have lowered acute crisis risks in the euro area and the United States,” the IMF said.

“But in the euro area, the return to recovery after a protracted contraction is delayed.”

Britain will only expand by 1% in 2012-13, according to the body, 0.1% less than previously predicted.

The figures emerged ahead of the publication of official GDP estimates for the final quarter of last year.