Thursday, April 10, 2008

IMF Predicts Slower World Growth, a Possible Recession

The International Monetary Fund cut its forecast for global growth this year and said there's a 25 percent chance of a world recession, citing the worst financial crisis in the US since the Great Depression.

Global growth will decelerate in 2008, led by a sharp slowdown in the United States, amid a housing correction and a financial crisis that has quickly spread from the U.S. subprime sector to core parts of the financial system, the IMF says in its latest World Economic Outlook.
  • World growth will slow to 3.7 percent in 2008, in wake of financial crisis
  • United States, other advanced economies lead slowdown. US economic growth forecasted at 0.5 percent in 2008 and 0.6 percent in 2009.
  • Emerging economies are likely to weather storm better, but not insulated


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