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IMF Sharply Lowered Global Growth Forecast &Nbsp; Focused On Warning The US.

2011/9/21 8:40:00 26

IMF Sharply Cuts Global Growth Expectations

In the global economic outlook report released on 20, the international

currency

The IMF has sharply reduced global economic growth expectations.

The report points out that the global economy has entered a "new dangerous situation".

The United States has unfortunately become the "poor student" who has been warned.

Down regulation


In the global economic outlook report, IMF will reduce global economic growth by 0.3% and 0.5% respectively in the next two years, down to 4%.


The negative factors referred to by I MF include that Japan has been tardy in the wake of the strong earthquake and tsunami, while the political situation in some major oil producing countries has been turbulent.

At the same time, the pfer of demand from the public sector to the private sector in the US economy has come to a standstill. The main financial markets in the euro area have experienced major fluctuations. Investors are selling large scale risky assets. The market is also worried about the ability of many countries to control public debt.


It is noteworthy that the United States has been expected to reduce economic growth in this report.

Range

Larger economies.

IMF pointed out that US economic activities may be hit more.

IMF predicts that the US economy will grow by only 1.5% this year, far below the 2.5% expected in June.

Next year's economic growth is expected to fall from 2.7% to 1.8%.


With regard to the growth forecast of the developed economies, IMF pointed out that in the most part of the second quarter of this year, the temporary factors of suppressing economic activity have gradually subsided, and the actual GDP of the developed economies is expected to grow at a slow pace.

The agency lowered the growth rate of the developed economies from 2.2% to 1.6% this year, down from 2.6% to 1.9% next year.


In addition, IMF expects the 17 economies of the euro area to grow by 1.6% this year, down from 2% forecast in June.

However, IMF raised its forecast for Japan's economic growth this year, from minus 0.7% in June to minus 0.5%.


The growth rate of emerging and developing economies has also been reduced.

According to the IMF report, the organization expects that the region's growth rate will reach 6.4% this year and 6.1% next year.

The forecast in June was 6.6% and 6.4% respectively.


IMF also predicts that China's economic growth this year will reach 9.5%, lower than 9.6% predicted in June, and the economy will grow 9% next year, which is also lower than the 9.5% forecast in June.


 
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