Global slowdown worse than thought - IMF

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, the IMF said.

It 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.

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.

ORIGINAL SOURCE

Content used in this not-for-profit blog remain the property of their respective owners.