Arab Today, arab today imf global slowdown worse than thought
Last Updated : GMT 03:56:53
Arab Today, arab today
Arab Today, arab today

IMF :Global slowdown worse than thought

Arab Today, arab today

Arab Today, arab today IMF :Global slowdown worse than thought

Washington - AFP

The global economy is much weaker than believed just months ago, and growth will pick up only slightly next year, the International Monetary Fund said Tuesday. The IMF lowered its growth forecasts for the global economy to 4.0 percent for 2011 and 2012, saying activity had \"weakened significantly,\" but warned of a return to recession if Western leaders fail to get their economies back on track. \"The evidence points to continued, uneven growth,\" the IMF said in a twice-yearly outlook report. The global economy, which rebounded in 2010 following the 2008-2009 Great Recession, has been dragged down by problems in the advanced countries, particularly the United States and the eurozone, it said. And emerging market economies that have been the recovery\'s driving force, such as China and India, will not escape unscathed from the weakness in the advanced economies, the Washington-based lender said. The IMF\'s World Economic Outlook report said global growth will be half a percentage point lower than it estimated in June, and well below the 5.1 percent pace in 2010. \"Anemic\" consumption in advanced economies and spiking financial volatility over worries about US and eurozone public debt have put the brakes on growth. The slower recovery in advanced economies this year was \"a development we largely failed to perceive as it was happening,\" acknowledged Olivier Blanchard, the chief economist of the 187-nation institution. A large increase in fiscal and financial uncertainty gathered steam in August, roiling financial markets as investors watched political gridlock in Washington over US debt and deficits and the spreading contagion of Greece\'s debt crisis in the eurozone. \"Markets have clearly become more skeptical about the ability of many countries to stabilize their public debt,\" Blanchard said in a statement. \"Strong policies are urgently needed to improve the outlook and reduce the risks,\" he said. The United States, the world\'s largest economy, suffered the most notable downgrade -- about a percentage point -- with gross domestic product growth estimated at 1.5 percent this year and 1.8 percent in 2012. For the 17-nation eurozone, GDP growth was projected to slow by about a half point, to 1.1 percent in 2012. Japan\'s economy is rebounding from the March earthquake and tsunami disaster, the IMF said, and is expected to contract 0.5 percent this year, less than previously estimated, before clocking in 2.3 percent growth in 2012. For the emerging market and developing economies, the IMF said that capacity constraints, policy tightening and slowing foreign demand would result in slightly slower GDP growth of 6.1 percent in 2012. China will continue to lead the world\'s growth but at a modestly slower pace -- 9.0 percent next year -- while India was projected at a 7.5 percent rate. Growth downgrades were nearly universal, from Russia, Latin America and Sub-Saharan Africa to the Middle East and North Africa. Rising oil prices, believed to be pushed up by the political unrest in the Arab world, also provided an unexpected shock to the global economy but appear to be unwinding, the IMF said. The forecasts assume a barrel will cost an average $100 in 2012, compared to $79.03 in 2010. The IMF warned that a negative feedback loop between low growth and fiscal and financial stability is at the heart of risks facing the world economy. Worries about sovereign debt have spread amid slowing growth, extending to the banks holding those government bonds, mainly in Europe. \"Policy indecision has exacerbated uncertainty and added to financial strains, feeding back into the real economy,\" the report said. \"WEO projections assume that policymakers keep their commitments and the financial turmoil does not run beyond their control, allowing confidence to return as conditions stabilize.\" If they fail to do that, \"the major advanced economies could fall back into recession,\" the IMF said. \"Vulnerable sovereigns are prone to a sudden loss of investor confidence in their debt sustainability if fundamentals deteriorate sharply.\" The IMF recommended a three-pronged approach to boost growth. Fiscal consolidation that is fast enough to inspire credibility but not so fast it will kill growth, as well as meaures to prop up domestic demand, such as continued low interest rates. The second leg is financial measures, including strengthening banks, while the final leg is rebalancing global trade flows. For example, the United States, should increase exports and China needs to increase imports. \"Only with this global rebalancing can we hope for stronger growth in advanced economies and, by implication, for the rest of the world,\" Blanchard said.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today imf global slowdown worse than thought Arab Today, arab today imf global slowdown worse than thought

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today imf global slowdown worse than thought Arab Today, arab today imf global slowdown worse than thought

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today O'Leary: Could ground more planes

GMT 06:49 2017 Friday ,22 September

O'Leary: Could ground more planes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Huthis stage defiant rally 3 years

GMT 05:29 2017 Friday ,22 September

Huthis stage defiant rally 3 years
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Youssra prepares for launching her  program

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 09:40 2017 Tuesday ,19 September

Actress Ream Hhagag prepares for a new film

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:03 2017 Thursday ,21 September

Alarm over flesh-eating ulcer cases

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday