IMF cuts its forecast for global economy in 2013

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Associated Press

Posted on April 16, 2013 at 7:03 AM

Updated Tuesday, Apr 16 at 7:33 AM

WASHINGTON (AP) — The International Monetary Fund has lowered its outlook for the world economy this year, predicting that government spending cuts will slow U.S. growth and keep the euro currency alliance in recession.

The global lending organization has cut its forecast for global growth to 3.3 percent this year, down from its forecast in January of 3.5 percent. It's keeping its prediction of 4 percent global growth in 2014.

The IMF expects the U.S. economy to expand 1.9 percent this year. That's below its January estimate of 2.1 percent and last year's U.S. growth of 2.2 percent. Still, the IMF says the U.S. economy should expand 3 percent in 2014.

The organization is issuing its latest forecasts in advance of spring meetings of the IMF and World Bank in Washington this week.

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