World economic growth is on course to slow for the rest of this year and into 2009, according to the latest forecasts from the International Monetary Fund.

In a note prepared for a meeting of the Group of 20 (G20) nations next week, the IMF predicts world growth this year of 3.9 per cent, down from the 4.1 per cent estimated in its World Economic Outlook last month, a G20 finance official told Reuters. It expects growth of 3.7 per cent in 2009, down from 3.9 per cent.

The IMF's forecast for growth in the US this year remains unchanged at 1.3 per cent, but it trimmed its outlook for 2009 from 0.8 per cent to 0.7 per cent, Reuters reports.

It also revised expectations for growth in the eurozone: down to 1.4 per cent for the rest of 2008 from 1.7 per cent in July, and down to 0.9 per cent for 2009, from its earlier forecast of 1.2 per cent.

Deputy finance ministers from the G20, a group of emerging and industrialised economies, will meet in Rio de Janeiro next week.

Explore Economics

• Pre-Budget Report 2008

• Budget 2008

• World Economic Forum

• The Times MPC

Times Recommends

• Lloyds TSB wins vote for HBOS merger
• Bank of England discussed 2% rate cut
• Woolworths dives as it confirms takeover talks