The International Monetary Fund (IMF) has cut its US growth projection for 2003 to 2.4pc from 2.6pc, and forecast 2004 growth of 3.9pc, according to reports citing its latest world economic projections. In its projections due for release next month, the IMF lowered its 2003 forecast for eurozone growth to 1.3pc from the 2.3pc forecast last September, and estimated 2004 growth of 2.4pc. This is more optimistic than the European Central Bank's revised forecasts.
The European Commission has signalled that it will lower its 2003 growth forecast for the eurozone from its most recent estimate of 1.8pc. The ECB has cut its 2003 forecast for eurozone growth to 1.0pc from 1.6pc and its 2004 projection to 2.0pc from 2.4pc. Among eurozone countries, Germany's growth forecast has been revised to 0.7pc from 2.0pc for 2003, with the economy expected to expand by 2.0pc in 2004. The IMF's forecast for French growth has been cut to 1.4pc for 2003 from 2.3pc, while it is projected at 2.6pc for 2004. //www.fxcentre.com