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IMF: Growth to slow

Rising risks will cause pace of growth to slow, according to latest forecast.


July 8, 2010 9:26 by

The IMF has cautioned that the slow motion global recovery is losing steam, reports the Wall Street Journal.

Growth over the next 18 months is now widely expected to fall below the pace of the first half of 2010, according to the International Monetary Fund’s latest forecast. Its updated World Economic Outlook predicts world expansion will decline to 4.3 percent next year from 2010′s 4.6 percent (revised up by 0.4 percentage points to reflect faster-than-anticipated growth earlier this year) according to the article.

“Downside risks have risen sharply amid renewed financial turbulence,” said the IMF. The debt loads of European governments are thought to be the biggest cause of this turbulence.

The IMF forecast is not as bad as other recent predictions, but nonetheless joins the likes of JP Morgan, IHS Global Insight and the Institute of International Finance in predicting a long road to recovery.


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