IMF Urges Stimulus as Global Growth Marked Down Sharply
The IMF is urging countries to stimulate their economies in the face of a bigger-than-expected slowdown in the global economy triggered by recent financial turmoil. This most recent IMF forecast cuts world growth by three-quarters a percentage point to 2.2 percent for 2009. In emerging economies, growth is expected to slow appreciably but still reach 5 percent in 2009.
OLIVIER BLANCHARD – DIRECTOR OF RESEARCH DEPARTMENT - IMF
Shotlist:
“Let me give you the bottom line..(OUT) by one percent.
Not Verbatim:
I am afraid I am again the bearer of bad news.
In the light of the information that has come in the last month, we have revised our growth forecasts, relative to WEO numbers.
Let me give you the bottom line. We have revised global growth for 2008 (y on y) by 0.2 percent, and for 2009 by 0.8 percent. So we are now down to 3.7 percent for 2008, and 2.2 percent for 2009.
Looking across countries, we forecast growth of -0.3 percent for advanced (decrease of 0.8 percent), and 5.1 percent for emerging and low income countries (decrease of 1.0 percent).
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