|The International Monetary Fund is expected to release a gloomier picture of the world economy this week, by trimming its forecast for global growth this year by 0.1pc.
The IMF cut its projection for 2013 growth in January, when it lowered its estimate to 3.5pc from 3.6pc and predicted a second year of recession in the euro area. The fund is this week reportedly set to reduce its forecast once again when it issues its latest World Economic Outlook on Tuesday.
A leaked draft of the closely-watched report, seen by the Bloomberg news agency, also shows that the US economy is likely to grow by just 1.7pc this year, compared with an earlier forecast of 2pc.
The IMF has cut its estimate for growth in the world’s biggest economy to account for the impact of the $85bn of spending cuts that automatically kicked-in last month, the so-called US sequester.
However, the IMF is expected to keep its forecast for the 17-nation eurozone unchanged next week, with the economy in the single currency area still projected to shrink by 0.2pc over the course of 2013.
Nevertheless, the fund is expected to highlight the potential instability arising from the uncertain Italian election result earlier this year, which led to political impasse in the country and reignited fears over Europe’s debt crisis.