IMF trims emerging market growth forecast

Emerging markets face increasing risks, the IMF warned on Tuesday as it trimmed its outlook for the countries which have been the main driver of global growth in recent years. Emerging and developing nations, which includes rising economic powerhouses China, India and Brazil, should register 4.9 per cent growth in 2014 the International Monetary Fund said. That meant it cut its January forecast by 0.2 percentage points. "These economies are adjusting to a more difficult external financial environment in which international investors are more sensitive to policy weakness and vulnerabilities given prospects for better growth and monetary policy normalization in some advanced economies," the IMF said in its latest World Economic Outlook (WEO) report. Emerging markets benefited considerably from the US Federal Reserve's monetary stimulus programme as many investors chose to seek higher returns available in develping nations, according to AFP.