The International Monetary Fund trimmed its global growth forecast for the fifth time since early last year due to a slowdown in emerging economies and the woes in recession-struck Europe. In its mid-year health check of the world economy, IMF also warned global growth could slow further if the pull-back from massive monetary stimulus in the United States triggers reversals in capital flows and crimps growth in developing countries.
European Central Bank (ECB) president Mario Draghi spoke on Thursday of a positive contagion in the Euro zone economy, saying that the financial situation is improving and growth is set to return in the second half of the year.