China's slowdown had a massive impact.
On Tuesday, the International Monetary Fund trimmed back its global growth expectations for the year to 3.1% from July’s outlook of 3.3%. The dimmed expectations reflect a slowdown in China’s economic growth and low commodity prices, according to the IMF’s latest World Economic Outlook report.
Even six years after the Great Recession, developed economies are only showing sluggish growth, according to USA Today.
“In an environment of declining commodity prices, reduced capital flows to emerging markets and pressure on their currencies, and increasing financial market volatility, downside risks to the outlook have risen, particularly for emerging market and developing economies,” the report said.
But it’s not all bad news–the IMF expects developing and emerging economies to rebound next year, thanks to a projected pick-up in developed economies and “normalization” of conditions that have been tamping down growth in countries like Brazil and Russia. China, on the other hand, will continue to see slowing growth, the report forecasted.