Global growth is still in low gear and the drivers of growth are shifting, says the International Monetary Fund (IMF)'s latest World Economic Outlook (WEO) report. The IMF forecasts global growth to average 2.9 per cent in 2013—below the 3.2 per cent recorded in 2012—and to rise to 3.6 per cent in 2014.
Much of the pickup in growth is expected to be driven by advanced economies. Growth in major emerging markets, although still strong, is expected to be weaker than the IMF forecast in its July 2013 WEO Update. This is partly due to a natural cooling in growth following the stimulus-driven surge in activity after the Great Recession. Structural bottlenecks in infrastructure, labour markets, and investment have also contributed to slowdown in many emerging markets.
Olivier Blanchard, Chief Economist, IMF