IMF predicts world recession will deepen
The International Monetary Fund has slashed growth forecasts for every major country and urged governments to take forceful action to ensure the world economy's recovery from a severe recession.
In its latest World Economic Outlook, the IMF said the global economy would likely contract 1.3 per cent this year in the deepest post-Second World War recession by far.
Growth is set to re-emerge at a sluggish 1.9 per cent next year but the pick-up depends on aggressive measures to repair a poorly functioning financial system.
"The longer this goes on, the longer and the deeper will be the recession," IMF chief economist Olivier Blanchard said.
Just three months ago, the IMF had projected global growth of 0.5 per cent, although last month it warned of a deep recession.
The Washington-based institution said it revised its forecasts downward because financial markets appear likely to take longer to stabilize than it had thought earlier. (more)
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