The International Monetary Fund (IMF) has cut its forecast for Canada and the global economy.

Its World Economic Outlook Update forecasts the Canadian economy will grow 2.3% this year, down from 2.4%. In 2015, it expects the economy to grow by 2.1%, down 0.3 percentage points from its previous forecast.

The IMF didn’t give specifics about why it cut Canada’s forecast but did say the drop in oil prices is bad news for exporters.

Read: 7 forecasts for 2015

For 2015, U.S. economic growth has been revised up to 3.6% from 3.1%, largely due to more robust private domestic demand. Cheaper oil is boosting real incomes and consumer sentiment, and there is continued support from accommodative monetary policy, despite the projected gradual rise in interest rates.

In contrast, weaker investment prospects weigh on the euro area growth outlook, which has been revised to 1.2%, down from 1.4%, despite the support from lower oil prices, further monetary policy easing, a more neutral fiscal policy stance and the recent euro depreciation.

In emerging markets and developing economies, growth is projected to remain broadly stable at 4.3% in 2015 and to increase to 4.7% in 2016—a weaker pace than forecast in the October.

Read: A tactically cautious year ahead

The growth forecast for China, where investment growth has slowed and is expected to moderate further, has been marked down to below 7%. And Russia’s economic outlook is much weaker, with growth forecast downgraded to –3.0% for 2015, as a result of the economic impact of sharply lower oil prices and increased geopolitical tensions.

Overall, global growth is forecast to rise moderately in 2015/16, from 3.3% in 2014 to 3.5% in 2015 and 3.7% in 2016, revised down by 0.3 percentage points for both years.

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