CRI听力:IMF: advanced economies down, emerging and developing economies up

The new IMF report suggests global economic growth will remain subdued through the rest of this year, largely due to a persistent stagnation in advanced economies.

IMF Economic Counselor Maurice Obstfeld says even though the IMF is maintaining its forecast for global growth at 3.1% for this year and 3.4% for next year, there are apparent winners and losers.

"The new World Economic Outlook sees a slowdown for the group of advanced economies in 2016 and an off-setting pick up for emerging and developing economies. Taken as a whole, the world economy is moving sideways."

China, the world second largest economy, remains a bright spot. The latest IMF forecast has put China's growth rate at 6.6% this year.

"You know we view the near term of prospects in China as favorable for maintaining our baseline forecast. This is in part of the result of the measures the Chinese authorities have taken to support the economy through fiscal means and other means."

The economist also warned of major challenges, such as the expansion in the financial sector that could threaten the stability in longer term. IMF urged Chinese policymakers to continue structural reforms and accept the associated slower GDP growth.

The forecast for U.S. growth, on the other hand, fell sharply from 2.2% to 1.6% this year. And 2017 prospect is also down from 2.5% to 2.2%. The Fund blamed a disappointing first half caused by weak business investment and consumption.

The looming hike of interest rate planned by the FED has also caused market volatility.

In addition, Obstfeld said, campaign rhetoric in the general elections has further fueled political tensions over globalization.

"There is clearly been a lot of discussion in the election of changes which could be a quite dramatic especially in terms of what has been U.S. long standing positions on trade policy. I think these have introduced an element of policy uncertainty into the mix."

IMF warned that the continued slowdown in advanced economies may fuel populist calls for restrictions on trade and immigration that would hamper productivity, growth and innovation.

Given the still weak and precarious nature of the global recovery, and the threats it faces, the IMF underscored the urgent need for a comprehensive, consistent, and coordinated policy approach to reinvigorate growth, ensure it is distributed more evenly, and make it durable.