Japan, whose population is both shrinking and aging faster than elsewhere, is confronting problems of high debt and stagnation, it said.
As usual, the bright spots are developing economies that were less affected by the global financial crisis, where rising employment and strong demand will help support growth, the IMF said.
China’s economy will likely expand 7.8 percent this year, down from July’s 8 percent forecast, though a pickup in construction projects is expected to spur growth late in the year. India’s economy will grow 4.9 percent, down from 6.1 percent. And Brazil’s growth will be only 1.5 percent, compared to 2.5 percent.
The IMF advised policymakers to devise stronger medium-term fiscal and structural reforms to shore up confidence in the growth potential of the advanced economies.
Only then, will investor confidence in markets and public debt be restored.
‘‘Unless governments spell out how they intend to effect the necessary adjustment over the medium term, a cloud of uncertainty will continue to hang over the international economy, with downside risks for output and employment in the short term,’’ it said.