Good news for countries more linked to the euro and the yen, bad news for those more linked to the dollar

The International Monetary Fund has cut its growth forecasts for the global economy on the back of a slowdown in China, looming recession in Russia and continuing weakness in the eurozone.

The Washington-based fund warns that the boost from lower oil prices is being outweighed by a host of negative factors and it now expects global growth to edge up only slightly from 3.3% last year to 3.5% this year. That is down from a 3.8% forecast for 2015 in its World Economic Outlook published in October. It forecasts growth picking up only slightly next year and cut its 2016 forecasts from 4% to 3.7%.

The gloomier outlook comes as business people and world leaders gather in the Swiss mountain resort of Davos for this year’s World Economic Forum meeting…

The US is the only major economy where the IMF has raised growth forecasts for the next two years. It sees a boost from lower oil prices and strong domestic demand helping the US economy to grow 3.6% this year, up markedly from a 3.1% forecast made in October.

IMF cuts global economic growth forecasts

Recession in Russia and slowdown in China will outweigh global benefits of lower oil prices, fund update says