The International Monetary Fund, IMF, is set to cut its forecast for global growth next month when it updates its projections for the world economy. IMF head Christine Lagarde said that on Monday ahead of the organization's annual meeting scheduled next month in Tokyo, Japan. Largarde said the public debt crisis in the Eurozone remains the biggest threat to the world economy but the possibility of a so-called "fiscal cliff" of expiring tax cuts and automatic government spending reductions next year in the US was a also a "serious" risk. She said there was now also evidence of a slowdown in emerging economies, and "great concern" in poor countries about rising food prices and volatile commodity prices, as well as growing frustrations with transitions across the Middle East. IMF plans to launch the world economic outlook on October 9th. In July, the IMF cut its global growth forecast to 3.5% in 2012 and to 3.9% in 2013. … [Read more...] about IMF to lower global growth forecast
Global growth fund
IMF cuts global growth forecast as emerging economies slow
WASHINGTON - The International Monetary Fund on Monday cut its forecast for global economic growth and warned that the outlook could dim further if policymakers in the euro zone do not act with enough force and speed to quell their region's debt crisis. Photo: Reuters In a mid-year health check of the world economy, the IMF said emerging market nations, long a global bright spot, were being dragged down by the economic turmoil in Europe. It said a drop in exports in these countries would combine with earlier policies meant to prevent overheating and slow growth more sharply than hoped. The IMF shaved its 2013 forecast for global growth to 3.9 percent from the 4.1 percent it projected in April, trimming projections for most advanced and emerging economies. It left its 2012 forecast unchanged at 3.5 percent. "Downside risks to this weaker global outlook continue to loom large," the IMF said. "The most immediate risk is still that delayed or insufficient policy action will further … [Read more...] about IMF cuts global growth forecast as emerging economies slow
WB cuts global growth estimate to 1 percent
The World Bank (WB) has lowered its global economic growth estimate for 2009 to 1 percent from 3 percent projected in June due to the spreading global financial turmoil. This was announced in the WB’s new economic outlook on November 11 together with support measures unveiled ahead of the weekend summit of the Group of 20 developed and developing economies. The bank's global growth forecast is much lower than the estimated increase of 2.2 percent by the International Monetary Fund (IMF) on November 6. Earlier the IMF forecast the growth of 3 percent. The WB has also cut its growth forecast for developing nations to 4.5 percent for 2009 from an earlier projected 6.4 percent, and that it expects high income economies, including Europe, Japan and the United States, to contract 0.1 percent compared with its earlier projection of 2 percent growth. The bank will also expand support for developing countries with new commitments of up to US$100 billion over the next three years … [Read more...] about WB cuts global growth estimate to 1 percent
IMF raises global growth forecast to 3.5 per cent
WASHINGTON - The International Monetary Fund on Tuesday hiked its global growth forecasts but warned the outlook was "very fragile" and could be shattered by Europe's debt crisis and high oil prices. The IMF estimated global growth at an annual rate of 3.5 per cent this year, accelerating to 4.1 per cent in 2013. The forecasts reflected an upgrade from the January forecast of 3.3 per cent and 4.0 per cent, respectively. "The outlook for the global economy is slowly improving again but is still very fragile," the IMF said in a twice-yearly report. The IMF raised its growth estimate for the advanced economies to 1.4 per cent for 2012. China continued to be the global driver. The world's second-largest economy was forecast to grow at 8.2 per cent, slightly stronger than previously believed. The improved global forecasts since January were due in part from better global financial conditions and easing fears about the eurozone debt crisis, the IMF said. Reconstruction in Japan … [Read more...] about IMF raises global growth forecast to 3.5 per cent
Economy to show stamina as global growth slows
WASHINGTON - The economy is gaining momentum and should push through next year with only a few bruises despite an almost certain European recession and slower global growth. A firming in the anemic labor market should put the economy in reasonable shape to withstand headwinds from overseas, although the recovery will likely slow at the start of the year after a surprisingly solid fourth quarter. "The U.S. economy will be one of the better stories in an otherwise gloomy global economy next year," said Sung Won Sohn, an economics professor at California State University in the Channel Islands. "It will not go into recession." Data from employment to manufacturing imply U.S. growth will top a 3 percent annual rate in the fourth quarter, which would be the fastest pace in 18 months. Much of that expansion reflects the release of pent-up demand for autos and a restocking of inventories by businesses, temporary factors that could lead to a lull early in 2012. But a healing labor … [Read more...] about Economy to show stamina as global growth slows