The International Monetary Fund (IMF) delivered a dismal report Tuesday that basically said to get a survival strategy ready now because Recession 2013
is on its way.
In its latest "World Economic Outlook " presented in Tokyo, a kick-off to the IMF World Bank 2012 Annual Meeting, the agency cuts its forecast for overall global growth to 3.3% for the remainder of this year. It said growth in 2013 would remain lethargic at 3.6%. These estimates were down from July's forecast of 3.5% and 3.9%, respectively.
The IMF presently sees"alarmingly high" risks of a steeper slowdown, with bleak one-in-six odds that growth will dip below 2%.
"A key issue is whether the global economy is just hitting another bout of turbulence in what was always expected to be a slow and bumpy recovery or whether the current slowdown has a more lasting component. The answer depends on whether European and U.S. policy makers deal proactively with their major short term economic challenges,' the report said.
Growth for emerging and developing regions was slashed from 6.2% to 5.3%. Markets in once stalwart regions like China, Brazil, India and Russia are all forecast to see waning growth.
World trade volume is projected to sink to 3.2% this year from last year's 5.8% and 2010's 12.6%.
IMF Chief Economist Oliver Blanchard said, "Low growth and uncertainty in advanced economies are affecting emerging market and developing economies through both trade and financial channels, adding to homegrown weakness."
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