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IMF: slashes global growth forecast by 2%, tells Athens to "respect the rules"


IMF: slashes global growth forecast by 2%, tells Athens to "respect the rules"

The IMF has cut its forecast for global growth from 3.5 percent to 3.3, blaming a weaker first quarter in the US. This is lower and slower than last year’s 3.4 percent expansion.

The Washington-based organisation’s Chief Economist Olivier Blanchard also downplayed the danger of a Greek collapse for the world economy, saying there has been no contagion so far. He also rejected claims that the IMF has been particularly severe with Athens: “The IMF is an institution which has 188 members, most of them being poorer than Greece and all of them not having had the kind of breaks that some people would like us to give to Greece. So given this, I think it’s absolutely essential to respect our rules.”

This is Blanchard’s last press conference, as he is retiring. When Euronews correspondent Stefan Grobe asked what he plans were, he replied; “go fishing.”

“On the Greek crisis, Blanchard did not sound particularly confident regarding a positive outcome of Sunday’s EU summit of last resort.” Stefan Grobe told Euronews, “but he also said not to panic. Greece only represents less than half of one percent of the world economy.”

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