The world is heading towards a global recession, latest forecasts from the International Monetary Fund (IMF) have predicted.
In it’s latest report International Monetary Fund (IMF) have predicted world growth could slow to 3.7 % in 2008— 0.5 % point lower than what was forecast in the January 2008, citing the unfolding financial market turmoil as the biggest downside risk to the global economy.
There is a 25 percent chance that the global economy will record 3 % or less growth in 2008 and 2009, equivalent to a global economic recession and market recession.
(Image credit: IMF)
Global growth will decelerate in 2008, led by a sharp slowdown in the United States, amid a housing correction and a financial crisis that has quickly spread from the U.S. subprime sector to core parts of the financial system, the IMF says in its latest World Economic Outlook.
China and India–which grew at 11.4 percent and 9.2 percent in 2007, respectively—are projected to grow at 9.3 percent and 7.9 percent, respectively, in 2008.
- World growth will slow to 3.7 percent in 2008, in wake of financial crisis
- United States, other advanced economies lead slowdown
- Emerging economies are likely to weather storm better, but not insulated.