Obstfeld warned of the “scarring effects” of persistent slow growth. AFP / MOLLY RILEY
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The International Monetary Fund cut its global growth forecast for the fourth time in the past year Tuesday, citing China's slowdown, persistently low oil prices and chronic weakness in advanced economies. The Fund, whose spring meetings along with the World Bank will be held in Washington this week, forecast that the global economy would grow at 3.2 percent in 2016 compared to its previous forecast of 3.4 percent in January.The IMF cut Japan's growth forecast in half to 0.5 percent in 2016 and said Brazil's economy would now shrink by 3.8 percent this year versus the previous forecast of a 3.5 percent contraction as it struggles through its deepest recession in decades.The IMF said it still expects China's growth to continue to weaken as it transitions to a consumer-driven economy.
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