The International Monetary Fund said Thursday it has trimmed down its expected global growth for 2015 to 3.3 percent, citing weaker-than-expected economic activity in North America during the first quarter. (Tweet This)
In April, the organization said its global growth projection for this year was at 3.5 percent.
Other factors contributing to the IMF's downward revision include a rebound in oil prices, rising bond yields and weak inflation, it said the latest edition of its World Economic Outlook.
"Oil prices have rebounded more than expected in the second quarter of 2015, reflecting higher demand and expectations that oil production growth in the United States will slow faster than previously forecast," the IMF said.
U.S. crude prices were up nearly 3 percent in morning trade.
"Nevertheless, the average annual oil price expected for 2015—US$59 a barrel—is in line with the oil price assumption in the April 2015 WEO, with a somewhat smaller increase forecast for 2016 and beyond..." the report said.
The IMF also kept its economic growth outlook for 2016 unchanged at 3.8 percent.
"The underlying drivers for a gradual acceleration in economic activity in advanced economies—easy financial conditions, more neutral fiscal policy in the euro area, lower fuel prices, and improving confidence and labor market conditions—remain intact," the report said.