IMF lowers eurozone expectations

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WASHINGTON, Jan. 23 (UPI) -- The International Monetary Fund Wednesday downgraded its October prediction of economic growth in Europe's single-currency region known as the eurozone.

The IMF said its forecasts were little changed from October, with the global economy expected to climb 3.5 percent in 2013 and 4.1 percent in 2014. Both forecasts were a knockdown from October by 0.1 percentage point.

In the eurozone, economic growth had been forecast for 2013, although it was expected to rise a minimal 0.1 percent. The new prediction calls for a 0.2 percent contraction in the 17-member region.

The 2013 prediction for the United States was lowered from 2.1 percent growth to 2 percent. For 2014, however, the prediction went the other way, climbing 0.1 percentage points from October to 3 percent from 2.9 percent.

"Policy actions have lowered acute crisis risk in the euro area and the United States, the IMF said in its World Economic Outlook report.

The report said the U.S. recovery "remains broadly on track.

In addition, the report notes that global growth, while slightly less robust than previously predicted, remains on a positive course with growth expected to climb from 3.2 percent in 2012 to 3.5 percent in 2013 and at a rate of 4.1 percent in 2014.

Forecasts for China were left unchanged with growth expected to reach 8.2 percent this year and 8.5 percent in 2014. In India, growth is expected to reach 5.9 percent in 2013, a slightly slower rate than predicted in October. In 2014, the economy in India is expected to grow 6.4 percent, a prediction consistent with October's.

Japan remains on course for economic growth to reach 1.2 percent in 2013 and 0.7 percent in 2014.

Japan's economy is expected to grow 2 percent in 2012, but growth is likely to be uneven, the IMF said. "Japan's stimulus plans will help boost growth in the near term, pulling Japan out of a short-lived recession," the report said.