IMF Cuts Growth Forecast for Global Economy |
|
June 17, 2011
The International Monetary Fund on Friday slightly lowered its estimate for global growth for this year to 4.3%, and said Europe's debt crisis and unexpectedly weak growth in the U.S. pose greater dangers to the global recovery than originally forecast.
The International Monetary Fund on Friday slightly lowered its estimate for global growth for this year to 4.3%, and said Europe's debt crisis and unexpectedly weak growth in the U.S. pose greater dangers to the global recovery than originally forecast. In Europe, the Greek debt crisis is escalating, with fresh concerns over Athens's political commitment to bailout terms and an impasse among European officials over how to finance Greece's growing financing gap. The risk of the country's default—and its problems contaminating the rest of Europe—is rapidly rising. In an update to its report on global economic prospects, the IMF revised down U.S. growth for the year by 0.3 percentage point to 2.5% and lowered next year's growth to 2.7%. The IMF partly blamed temporary factors: high commodity prices, bad weather and the impact of Japan's catastrophe on its manufacturing sector weighing on U.S. prospects.
Related Links
