IMF to lower global growth forecasts

The International Monetary Fund will lower its growth forecasts for the global economy next month, an IMF official said Thursday. "The global economy has weakened. We are shaving off our forecast for global growth by a few decimal points," said Hoe Ee Khor, assistant director of the IMF's Asia and Pacific Department, in a conference call on South Korea's economy. In its last estimates the Washington-based global lender projected global growth of 3.5 percent in 2012 and 3.9 percent in 2013. It is slated to unveil new forecasts on October 9 at the annual IMF and World Bank meetings in Tokyo, Japan. "We expect the global economy to recover gradually over the next year," said Khor, who is the IMF mission chief for South Korea. On Thursday, the IMF cut its growth estimate for South Korea to 3.0 percent, from a June forecast of 3.25 percent, citing the eurozone crisis and high household debt problems. "The main short-term risk to the outlook is a further escalation of the euro area crisis, which would have a significant impact on Korea," the IMF said.