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Friday, July 6, 2012

IMF To Cut Global Growth Forecasts In Another Blow To Confidence ...

Christine Lagarde, Managing Director, Internat...
Christine Lagarde, Managing Director, International Monetary Fund (Photo credit: Wikipedia)
An extraordinary number of actions have been taken recently that show a rising belief the global economy is in trouble. First among these are the rate actions taken by the European Central Bank, Bank of England and Chinese officials to make money more affordable. Another is a recent International Monetary Fund warning that U.S. economic growth could dip to 1% next year if political gridlock continues. Another is a new set of tentative plans by Europe to immediately help some of its nations that have fallen into deep recessions. Each of these pieces of news or decisions has served to undermine confidence that a global economic recovery is under way. That confidence was hit hard again today when IMF Managing Director Christine Lagarde said that her organization plans to drop its forecasts of world growth when it issues its new outlook. “The global growth outlook will be somewhat less than we anticipated just three months ago,” Lagarde said. “And even that lower projection will depend on the right policy actions being taken.” Three months is not a very long time, especially when it comes to an analysis of the prospect of the economy across the entire world. ... Continue to read.
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