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Global recession in 2009, forecasts IMF
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Global recession in 2009, forecasts IMF
The International Monetary Fund (IMF) released its global economic forecast Thursday in the face of a growing credit crisis and predicted a recession in the US and the world in 2009.
In an update of its World Economic Outlook from October, the IMF said global growth would slow to 2.2 percent in 2009, down from the 3-percent forecast made last month. Growth of under 3 percent is considered a global recession.
The US, the world`s largest economy, will contract by 0.7 percent and the euro area by 0.5 percent in 2009. Advanced economies as a whole will contract 0.3 percent, compared to 1.4-percent growth this year, it said.
All figures represent a downward revision of more than 0.7 percent from the IMF`s October forecast.
Developing and emerging economies by contrast will continue to lead growth in the world, increasing 5.1 percent in 2009. But that is still down from a forecast of 6.1 percent made in October. Growth in the developing world was forecast at 6.6 percent this year.
A global financial crisis has severely impacted the availability of credit around the world, curbing spending in wealthy nations and restricting poorer nations` access to foreign investment.
"There has been a sharp worsening of credit conditions to emerging countries," said chief IMF economist Olivier Blanchard.
The IMF expects sharp slowdowns in Eastern Europe as well as Russia and its neighbours. China`s economy will continue to grow at 8.5 percent in 2009, down from 9.7 percent this year and 11.9 percent in 2007.
Source:
http://Silicon India
In an update of its World Economic Outlook from October, the IMF said global growth would slow to 2.2 percent in 2009, down from the 3-percent forecast made last month. Growth of under 3 percent is considered a global recession.
The US, the world`s largest economy, will contract by 0.7 percent and the euro area by 0.5 percent in 2009. Advanced economies as a whole will contract 0.3 percent, compared to 1.4-percent growth this year, it said.
All figures represent a downward revision of more than 0.7 percent from the IMF`s October forecast.
Developing and emerging economies by contrast will continue to lead growth in the world, increasing 5.1 percent in 2009. But that is still down from a forecast of 6.1 percent made in October. Growth in the developing world was forecast at 6.6 percent this year.
A global financial crisis has severely impacted the availability of credit around the world, curbing spending in wealthy nations and restricting poorer nations` access to foreign investment.
"There has been a sharp worsening of credit conditions to emerging countries," said chief IMF economist Olivier Blanchard.
The IMF expects sharp slowdowns in Eastern Europe as well as Russia and its neighbours. China`s economy will continue to grow at 8.5 percent in 2009, down from 9.7 percent this year and 11.9 percent in 2007.
Source:
http://Silicon India
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Enter your comment:
Neil 07-11-2008
Did we need the IMF to tell us this?
Stating the obvious is displacement activity, they are trying to look busy because the world is watching. It`ll take another 6 months to a year for them to grasp the real state of affairs and start to think of solutions.
As for their predictions for the Chinese economy, with their makets in recession who are they going to sell to?
Stating the obvious is displacement activity, they are trying to look busy because the world is watching. It`ll take another 6 months to a year for them to grasp the real state of affairs and start to think of solutions.
As for their predictions for the Chinese economy, with their makets in recession who are they going to sell to?
