IMF: Global economy enters dangerous new phase
WASHINGTON. September 21. KAZINFORM The International Monetary Fund (IMF) on Tuesday downgraded global economic outlook as two-speed growth continues with advanced economies growing sluggish and emerging markets becoming relatively robust; Kazinform refers to China Daily.
World output growth would be 4 percent both in 2011 and 2012, 0.3 and 0.5 percentage point lower than its June forecast.
The figures are contained in the IMF's latest World Economic Outlook report, the flagship product of the Washington-based international institution.
Uneven growth continues
"The global economy is in a dangerous new phase," the report said. "Global activity has weakened and become more uneven, confidence has fallen sharply recently, and downside risks are growing."
The Fund noted that, against a backdrop of unresolved structural fragilities, a barrage of shocks hit the world economy this year, including the devastating earthquake and tsunami in Japan and unrest in some oil-producing countries.
At the same time, the U.S. economy had stalled, the euro area encountered major financial turbulence, and global markets suffered a major sell-off of risky assets.
The report said the forecast for advanced economies was gloomier due to the continuing evolution of the sovereign debt crisis in Europe, with increasing market worries about a debt default in Greece.
The IMF projected that growth in advanced economies in 2011 and 2012 would only reach 1.6 percent and 1.9 percent, slower than its projections in June.
The structural problems facing the crisis-hit advanced economies had proved more intractable than expected, and the process of devising and implementing reforms even more complicated, the Fund said; Kazinform cites China Daily.
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