Close
Log in
Please enter your login details

Skip to main content

Breaking News
  • British Prime Minister David Cameron: “Britain will take thousands more refugees from Syria”
  • United Arab Emirates says 22 Emirati soldiers killed during conflict with Houthis in Yemen since March
  • 5,600 migrants have entered FYR of Macedonia via Greece in one day, according to the United Nations
  • Turkish PM Davutoglu says Turkey attempted in vain to convince the world to set up a safe zone inside Syria to stem the flow of refugees
  • Syria: ISIL militants have blown up three ancient tower tombs in Palmyra built between 44 and 103 AD, according to Syria’s antiquities chief
Facebook Twitter Google+ Reddit

The latest International Monetary Fund report on the health of the world economy includes a lower forecast for growth in the US and a big downgrade for Japan after the earthquake and tsunami there.

It continues to predict a slow-paced global economic recovery but warned oil prices and inflation pose risks.

After global growth last year of five percent the IMF forecasts 4.4 percent this year accelerating slightly next year to 4.5 percent.

The US and euro zone will show little change. Growth of 2.8 percent in the states in 2010 and 2011. The euro zone saw 1.7 percent economic expansion last year which will slip to 1.6 percent this year.

Earthquake hit Japan will see growth slow to 1.4 percent this year from 3.9 percent last year.

The IMF stressed that risks to its forecast abounded, including a spike in oil and commodity prices, as well as inflation, Mideast and North African political unrest, and debt problems in Europe but its economists said they are not yet enough of a problem to derail the recovery.

It said the US economy is recovering at such a sluggish pace that the Federal Reserve needs to keep an easy monetary policy in place while the government comes to grip with its debts.

The Fund said inflation pressures were likely to build in developing countries as people pushed for higher wages in the face of pricier food and fuel.

The fastest growth was still coming from emerging economies, it said. China was expected to lead the way with growth of 9.6 percent this year

More about: