Global economy grows in low gear, entering another transition

The International Monetary Fund (IMF) on Tuesday lowered its forecast for global economic growth, saying the world economy has entered another transition with a set of challenges that call for new reform efforts.

The Washington-based global lender cut its growth forecast for the world economy to 2.9 percent this year, 0.3 percentage point lower than its July projection, due to a slowdown of growth in key emerging market economies. It also revised down its forecast for the world economic growth for next year to 3.6 percent, 0.2 percentage point lower than its July estimate.