TOKYO – The International Monetary Fund (IMF) will reduce its estimate for global growth this year on weakness in investment, jobs and manufacturing in Europe, the US, Brazil, India and China, Managing Director Christine Lagarde said. "The global growth outlook will be somewhat less than we anticipated just three months ago," Lagarde said in a speech in Tokyo Friday. "And even that lower projection will depend on the right policy actions being taken." The new outlook will be announced in 10 days, after an April estimate of 3.5 percent, she said. She expressed concern at a deterioration in the global economy, saying the outlook has become more worrying as developed and big emerging nations show signs of slowing down. Interest-rate cuts in China and Europe Thursday and the Bank of England's boost to an asset-purchase program underscored the fragility of the global recovery as austerity measures and debt burdens weigh on advanced nations. Lagarde is pressing for fiscal union in Europe to aid growth and financial stability as nations such as Greece wrestle with balancing their books. The "key emerging markets" of Brazil, China and India are showing signs of slowdown, she said. Those three countries along with Russia will comprise more than 20 percent of the world economy this year, according to IMF data. "Over the past few months, the outlook has regrettably become more worrisome," Lagarde said. "Many indicators of economic activity -investment, employment, manufacturing - have deteriorated. And not just in Europe or the United States." The IMF has already lowered its US growth estimate to 2 percent from April's 2.1 percent. An average of just 75,000 jobs were created every month in the April-June quarter, far below the 226,000 created every month in the first three months of the year. Oil prices slid Friday as bearish views of consumption took root after dismal US jobs numbers and the IMF's warning it will cut its global growth forecast later this month. An average of just 75,000 jobs were created every month in the April-June quarter, far below the 226,000 created every month in the first three months of the year. New York's main contract, West Texas Intermediate crude for August delivery, lost $2.77 to stand at $84.45 a barrel. Brent North Sea crude for August dropped $2.51 to $98.19 a barrel in London. Oil prices fell from the beginning of the day. – Agencies
