IMF downgrades Australia's expected growth rates: Treasurer

Australian Treasurer Joe Hockey confirmed on Wednesday in a statement that the International Monetary Fund's (IMF) World Economic Outlook has outlined the risks ahead for the Australian and global economy.

According to this statement, the IMF has downgraded the expected growth rates for the Australian economy by 0.5 percentage points for both 2013 and 2014, compared with the IMF's most recent Australian estimates published in its April 2013 World Economic Outlook.

And the IMF forecasts Australia's unemployment rate to rise from 5.6 percent in 2013 to 6.0 percent in 2014.

"The IMF now forecasts Australia will grow by 2.5 percent in 2013 and 2.8 percent in 2014. These are calendar year forecasts but they are broadly in line with the forecasts released in the Pre-Election Economic and Fiscal Outlook," Hockey said in the statement.

"The downside risks documented in the World Economic Outlook confirms significant risks to the Australian Budget that will need to be appropriately managed by the Coalition government," he added.

The Outlook also said that key economies in the Asia-Pacific region have had their forecast growth rates downgraded. China's growth has been downgraded to 7.6 percent in 2013 and 7.3 percent in 2014, from 7.8 and 7.7 percent respectively in the IMF's July Update.

India is expected to grow 3.8 percent in the 2013 Indian fiscal year and 5.1 percent in the 2014 Indian fiscal year, down from 5.6 and 6.3 percent respectively in the IMF's July Update.

The IMF has also downgraded its forecasts for global economic growth from its July World Economic Outlook Update. The world economy is now expected to grow at 2.9 percent in 2013, down from 3.1 percent in the IMF's July Update. The forecast for 2014 has been downgraded to 3.6 percent from 3.8 percent.

However, the IMF further notes that emerging market economies will still continue to account for the bulk of global growth in 2013 and 2014.