IMF slashes world growth forecast

IMF slashes world growth forecast

news.bbc.co.uk

The International Monetary Fund (IMF) has said that the world economy will grow much more slowly in the next two years as a result of the credit crunch.

In its latest economic forecast, the IMF says that world economic growth will slow to 3.7% in 2008 and 2009, 1.25% lower than growth in 2007.

The downturn will be led by the US, which the IMF believes will go into a "mild recession" this year.

Growth in the UK will slow sharply to 1.6% in both 2008 and 2009.

Its UK forecast is substantially below the Treasury forecast of around 2% growth this year and 2.5% next year made at the time of the March Budget.

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looks like the dominio affect is taking place around the world from the US and so on.

and it looks like they are warning that there is a risk that the crisis could get worse.


US growth has been prodicted to drop and that goes same with the UK
with housing prices to drop by what looks like alot at 10-20%

which looks like good news for someone that has the money to buy into housing.

And it warns that the spillover will more severe in Latin America or in countries linked to the dollar

this part stood out the most to me
does this mean all countries that are ditching the dollor are doing the right thing and Iran and co are on the right path which others should follow asap.


news.bbc.co.uk
(visit the link for the full news article)

[edit on 9-4-2008 by bodrul]

A Slowdown doesn't necessarily have to mean its a crisis
World economies may slowdown , but that doesn't mean that the world economies will collapse , there still growing aren't they?
Its like saying when your body stops growing or grows slower, does that mean your about to die? , don't think so