IMF: World economy in 'dangerous phase'

[jannyk]

Source: BBC

The global economy has entered a "dangerous new phase" of sharply lower growth, according to the International Monetary Fund (IMF). The organisation warned that continuing political and economic woes in the US and eurozone could force them back into recession. The IMF says the prognosis for economies in the developed world is "weak and bumpy expansion". It predicts their GDP will expand "at an anaemic pace of 1.5% in 2011"


The IMF report also voices concerns about the US economic recovery and the chance it might "suffer further blows" including a weak housing market and worsening financial conditions. It warns that either of the issues could drag both the US and the euro area into recession. It suggests that the US needs to devise a plan to "put public debt on a sustainable path and implement policies to sustain the recovery".

The IMF has also voiced fears that the US is facing what it calls a "very sluggish recovery of employment".

Read more: http://www.bbc.co.uk/news/business-14984087

[elleng]

1. Posted earlier

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x5000111

[jannyk]

2. Sorry mods, dupe please delete