IMF downgrades outlook of global economy

The International Monetary Fund on Tuesday released its latest World Economic Outlook revising downward growth forecast for the global economy, while its annual meetings jointly held with World Bank kicked off in Tokyo.

The report downgraded the growth forecasts for the global economy to 3.3 percent for 2012 and 3.6 percent for 2013 from the July projections of 3.5 percent and 3.9 percent respectively.

The Washington-based multilateral lender said in its report that the world economic recovery "has suffered new setbacks, and uncertainty weighs heavily on the outlook," calling for US and European policymakers to accelerate efforts to tackle challenges.

The annual meetings, with participants including over 20,000 government and private-sector officials and central bankers, are expected to touch topics ranging from the eurozone crisis and the slowing global economy to measures to support developing nations.

The weeklong event will also highlight efforts to limit the economic impact of natural disasters. The Japanese government will co-host a meeting on Tuesday and Wednesday in Sendai, the region which is worst affected by the March 2011 earthquake and tsunami.

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