China's economic growth in 2016 is projected at 6.6% – IMF

Almaty. October 5. Silkroadnews – The report by the International Monetary Fund (IMF) forecasts lower global growth and warns that economic stagnation can cause calls for protectionism.

«This year the world economy is projected to grow by 3.1%, this level has not changed in comparison with the IMF July forecasts. Next year's economic growth will rise up to 3.4% due to the rise in the largest emerging markets, including Russia and Brazil», the official site informs with reference to the October 2016 «World Economic Outlook».

As noted, the global economic growth this year will be reduced due to the weaker-than-expected growth in the United States and the June U.K. vote in favor of leaving the European Union. It projects a slight increase in growth rates for 2017 and subsequent period mainly due to strong growth in emerging markets.

The 2016 growth forecast for advanced economies has been marked down to 1.6 percent, which is less than last year's rate of 2.1% and reflects a decline in the expected growth rate projected at 1.8% in July.

The IMF cut its forecast for the US growth for this year to 1.6% compared to 2.2% projected in July, taking into account the first half of the year with weak business investment activity and slowdown in inventory accumulation. Growth rates in the US are likely to rise to 2.2% next year along with reduction of negative impact from lower energy prices and dollar strengthening.

Uncertainty after the June referendum on Brexit impacts investors' confidence. In the UK growth is expected to slow to 1.8% this year and 1.1% in 2017 compared to 2.2% of last year.

Economic growth in the Euro area is expected to make 1.7% this year and 1.5% next year, versus 2% growth in 2015.

Growth in emerging markets and developing economies is expected to strengthen slightly to 4.2% for the first time in last six years, slightly higher compared to July's forecast of 4.1%. For the next year the emerging markets are expected to make 4.6% growth.

With this the prospects varies throughout different countries and regions. For example, for China the economic growth is projected at 6.6% this year and 6.2% next year, meaning a decrease compared to 6.9% observed last year.

Growth in Asian emerging markets, especially in India, continues to be resilient. The largest economies in sub-Saharan Africa are experiencing sharp slowdowns or recessions as lower commodity prices interact with difficult domestic political and economic conditions. Economic activity in Latin America slowed down, as some countries continue to experience decline, though 2017 is expected to bring growth strengthening. The Middle East states continue to experience difficulties due crude prices drop, civil conflicts and terrorism.