IMF cuts global growth outlook over aftermath of Ukraine crisis

The IMF said Tuesday the world's two largest economies, the US and China, could continue to expect growth of 3.6 percent this year and 3.9 percent in 2015. The figures were rolled back, though, by 0.1 percent from January's forecast.

The IMF's latest World Economic Outlookhad a slightly less optimistic tone as it was issued after the outbreak of the Ukraine crisis caused by an anti-government revolt and Russia\'s annexation of Crimea.

The crisis was found to have exacerbated Russia's sharp economic downturn, with the country grappling with sanctions from the West and the IMF worried about the impact spreading beyond the region.

Austerity versus stimulus

The report also addressed a sharp decline in economic momentum in other leading emerging countries such as Brazil, South Africa and Turkey, which were said to be a drag on global output.

The IMF noted those nations remained especially vulnerable to turbulence that started with the US Federal Reserve's slow tightening of monetary conditions, driving a rise in interest rates and pulling capital away from riskier markets.

The new figures also once again raised the sensitive issue of whether strained governments should forego deficit-slashing austerity programs and spend more to boost economies.