In its October 2015 World Economic Outlook, the International Monetary Fund downgraded its global GDP growth forecasts by 0,2 per cent to 3,1 per cent and 3,6 per cent in 2015 and 2016 respectively. The 3,1 per cent global growth forecasted for 2015 is materially lower than the 3,8 per cent forecasted a year ago.
This downward revision is mainly as a result of the downscaling of the growth projections for the emerging economies. The downwardly revised growth outlook for emerging-market economies is mainly attributable to the relative slowdown in China which faces overcapacity in its traditional industries, a property oversupply, an erosion of its competitive advantages, and elevated levels of debt.