IMF revises world economic growth; lowers global growth predictions

WASHINGTON, July 9 (UPI) -- The International Monetary Fund reduced its estimate of expected global growth in 2015 Thursday, citing financial market turbulence and slower U.S. expansion.

In revisions to its World Economic Outlook, released Thursday in Washington, the IMF said the world economy would grow by 3.3 percent, down from its April prediction of 3.5 percent. Its prediction for 2016, a 3.8 percent increase, was left unchanged.

The report singled out China and the Eurozone as areas of potential risk. China is currently in the midst of a stock market upheaval, with stock prices falling until a big increase Thursday; negotiations with creditors, if they fail, could push Greece from using the Euro as currency. Much of the IMF downgrade was caused by the United States' slower-than-expected growth in the first quarter of 2015, although it referred to the U.S. setback as "temporary."

"The projected pickup in global growth, while still expected, has not yet firmly materialized. Raising actual and potential output through a combination of demand support and structural reforms continues to be the economic policy priority."

It also noted the price of oil rebounded faster than expected in 2015's second quarter, reflecting higher demand.