Gloom And Doom From The IMF
October 8, 2012
Economists from Christine Lagarde’s International Monetary Fund forecast slower global growth in their most recent report.
The IMF released a new World Economic Outlook this week in which it lowered its 2012 global growth forecast to 3.3% and lowered the forecast for 2013 to a gloomy 3.6%. Major factors for the gloom center upon slumping world trade and the looming U.S. fiscal cliff, along with public spending cutbacks and slower growth in emerging markets. The IMF is meeting in Tokyo this week for their annual global get together.
Key Findings:
The United States will average 2.2% growth for 2012 while GDP will grow 2.5% in the second half of the year and rise to 2.75% in late 2013.
European GDP will decline by 0.4% in 2012 and stay flat to grow 1% in 2013. Core countries will grow while periphery countries will experience economic contraction and recession in 2012 with recovery sometime in 2013.
Japan will continue with slow growth in both 2012 and 2013.
Asia will grow 6.7% in 2012.
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