By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-The International Monetary Fund (IMF) said on Wednesday that global growth remains moderate on further slowdown in emerging economies and a weak recovery in advanced economies,.

“In an environment of rising financial market volatility, declining commodity prices, weaker capital inflows, and depreciating emerging market currencies, downside risks to the outlook have risen, particularly for emerging markets and developing economies,” the IMF said in report.

This is coming on the heels of instability in global markets, with United States (US) crude prices closing up almost two (2) percent on Wednesday following a decline of about four (4) percent. A move which came a day after crude futures settled down nearly eight (8) percent after a massive three-day rally.

Also, global equities have nosedived and unstable with U.S stocks closing more than one (1) percent higher across the board a day after plunging more than two (2) percent.

The IMF says with the recent trend, advanced economies should maintain supportive policies. “In most advanced economies substantial output gaps and below-target inflation suggest that the monetarystance must stay accommodative. Fiscal policy should remain growth friendly and be anchored in credible medium-term plans. Managing high public debt in a low-growth and low-inflation environment remains a key challenge,” the IMF affirmed.

According to global lender, in advanced economies, economic activity is projected to pick up modestly in the first- half of the year and into 2016.

While in emerging economies growth this year is projected to slow again relative to 2014; some rebound is projected next year, as conditions in distressed economies, while remaining difficult, are projected to improve.

The IMF said financial conditions for emerging market countries will tighten up amidst weakening commodity prices and China’s economic slowdown.

In the United States, growth in the first half of the year was 1.8 percent, compared to 3.8 percent in the H1 period of 2014.  “Recent revisions in the U.S. national accounts suggest that productivity growth during 2012-14 was lower than previously thought,” the IMF report added.

The Fund further affirmed that it believes growth will pick up in the U.S economy in the second half as well as other advanced economies, including Europe and Japan.