English | دری

IMF cuts global growth forecast

in International Business

IMF cuts global growth forecast

Amid continuing economic tensions in the Eurozone and disappointing growth rate of the US economy, IMF looks likely to cut its forecast for global growth.

IMF head Christine Lagarde, speaking in Washington, said on Monday: “We continue to project a gradual recovery, but global growth will likely be a bit weaker than we had anticipated even in July, and our forecast has trended downward over the last 12 months.”

In July, global growth rate for 2013 was forecast at 3.9%.

Ms. Lagarde welcomes Eurozone governments’ decision of purchasing unlimited number of bonds from distressed Eurozone countries; however, she regarded the region to be the “epicenter” of the global crisis.

With regards to the US situation, Ms. Lagarde added that the approaching U.S. “fiscal cliff,” and its threat of dramatic government spending cuts, could have global ripple effects, too.

Central-bank policy has been a main prop for developed countries, with the U.S. Federal Reserve and the Bank of Japan announcing rounds of “quantitative easing” to pump money into those economies and the European Central Bank approving plans to ensure that governments can finance their operations.

But that may prove only a temporary salve, Lagarde suggested, without more steps to reignite growth in Europe and address fiscal problems in the United States.



Related Articles

A Snapshot of the Current Status of Russia’s Economy

Despite not seeing double-digit economic growth for over ten years, and been hit hard by the recession in 2009, Russia

China changes its one-child policy

China has endorsed its one-child policy that has been enforced upon its population since 1970s to curb the nation’s rapid

China working towards more economic reforms

Addressing the Communist Party, China’s president Hu Jintao said the country will deepen its economic reforms aimed mainly at expanding

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.