IMF: Global growth slowing
The pace of global economic growth is slowing and the major developed nations continue to pose the major threats as they battle with high debt and below-par growth, the International Monetary Fund said Wednesday in its latest world forecast.
The IMF forecast world growth of 3.5 percent for 2013, slightly less than the organization projected in its previous forecast in October.
IMF chief economist Olivier Blanchard said he thought current conditions warranted “some cautious optimism” because “acute risks” have decreased — most notably the possibility that the euro currency union might disintegrate.
But he said growth remains weak through much of the developed world and, in particular, is “not enough to make a dent in the unemployment rate” — projected to remain at an elevated 8 percent among industrialized countries.
The fund's forecast puts it largely in line with that of World Bank economists who last week also projected slowing growth and continued divergence between fast growing economies in Asia and Latin America, stodgy but consistent growth in the United States, and recession in the heart of Europe.
U.S. growth is projected at 2 percent, about a tenth of a percentage point below the IMF's October figure and a less optimistic forecast than that of the Federal Reserve. Growth has essentially stalled in the United Kingdom and Japan — with Japan only projected to grow next year because of major new government stimulus spending.
A possible exit by the United Kingdom from the European Union could pose another shock if it disrupts trade or financial ties with the continent. U.K. Prime Minister David Cameron has promised an up or down vote on the issue.
Prospects for the euro zone remain dimmest of all: The IMF expects the 17-nation currency region to remain in recession for the year. The IMF previously forecast the euro-zone economy would grow by 0.2 percent in 2013. Between tepid growth in Germany and France and continued decline in Italy and Spain, the region's economy is expected to contract by 0.2 percent over the year.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Chevron gains approval for $1B refinery project
- Hyundai recalls 883K Sonatas to fix gear shifters
- Fed offers a dual message on health of economy
- Vigorous economy growing roots
- 11,000 Kawasaki vehicles recalled for injury risk
- Sprint CEO weighs price cuts
- Tech giants lead rush for profits in foreign countries
- Investors content with pace on stocks even in face of good news
- Lenders could move against Anchor Hocking as extension expires
- Groups stand against ‘sub-minimum’ wage for workers with disabilities
- State to seek comments on drilling below Loyalsock State Forest