The International Monetary Fund last week lowered its estimate for world economic growth for 2013 to 3.25 percent from 3.45 percent in January, but did not change its growth projection of 4 percent for next year.
The IMF said its World Economic Outlook
that advanced economies are expected to gradually accelerate in the second half of the year on the heels of emerging markets. Private demand in the United States is strong, but it is weak in the euro zone.
"Global prospects have improved again but the road to recovery in the advanced economies will remain bumpy," the report said.
The international lending organization said the U.S. government's automatic budget cuts will subtract 0.3 percent from U.S. growth this year if sustained through the end of the fiscal year on Sept. 30. If the sequester continues into the next fiscal year it could shave another 0.2 percent from annual growth. The IMF revised its estimate for U.S. Gross Domestic Product from 2.1 percent in January to 1.9 percent, and said the U.S. economy would grow 3 percent in 2014. - Eric Kulisch