The International Monetary Fund (IMF) has downgraded its global growth forecast for 2014, citing a weaker-than-expected first quarter, particularly in the U.S., and a "less optimistic" outlook for several emerging markets.
The global economy will likely expand 3.4 percent this year, a cut of 0.3 percentage points from April's estimate, but still an improvement from 3.2 percent in 2013, the IMF said.
"Global growth could be weaker for longer, given the lack of robust momentum in advanced economies despite very low interest rates and the easing of other brakes to the recovery," the IMF said in its World Economic Outlook update published on Thursday.
"In some major emerging market economies, the negative growth effects of supply-side constraints and the tightening of financial conditions over the past year could be more protracted," it added. Central banks in several emerging markets including Brazil, Indonesia and Turkey have aggressively raised interest rates over 2013-2014, leading to tighter financial conditions.