Should we be worried about the IMF's global growth forecast cut?

In the eyes of the IMF Britain's fortunes are improving.

It predicts our economy will grow by 2.5% this year. Of the G7 advanced economies, only the United States will grow faster. As a result it predicts we should expect interest rate rises at some point next year.

Meanwhile the IMF's forecast for global growth has been cut to 3.1%. A fifth successive year of declining growth, the weakest performance since 2009.

"Robust growth remains elusive," it admits.

Why? There isn't a consensus.

In parts of the world populations are aging, in parts of the world debt levels are high.

Emerging economies are causing the most concern.

Brazil and Russia are in recession. China's economy continues to slow. So too has China's appetite for raw materials to build roads, railways entire cities.

Credit: PA Wire

As a result the price of steel and oil and a series of other commodities has collapsed and the impact is being felt here in Britain.

Last week the steel plant in Redcar went bust, more happily prices are flat-lining as inflation has hit absolute zero.

What could go wrong? If China continues to weaken quite a lot.

The IMF believes in a "soft landing" - that the worst won't happen and things will pick-up next year.

The problem is its recent forecasts have consistently proved over-optimistic.