Don't miss

Replay


LATEST SHOWS

ENCORE!

Music show: Electro Deluxe, Paris Hip-Hop Festival and TLC's comeback

Read more

BUSINESS DAILY

Frankfurt leads Paris in race for Brexit spoils

Read more

MEDIAWATCH

20 years of Harry Potter

Read more

THE DEBATE

Modi meets Trump: The ties that bind US, India leaders

Read more

FOCUS

Left-wing activism on the rise in the United States

Read more

TALKING EUROPE

'Huge failure' on refugee crisis is 'existential problem for EU'

Read more

TALKING EUROPE

Divisions over migration policy: What should the EU do?

Read more

YOU ARE HERE

A trip through France's breathtaking Auvergne region

Read more

IN THE PAPERS

When Modi met Trump: Budding romance or one-night stand?

Read more

Business

IMF lowers global economic forecast, worst since World War II

Video by Marian HENBEST

Latest update : 2009-04-22

The International Monetary Fund has lowered its forecast of world growth, estimating that the global economy will contract by 1.3% this year, slipping into "the deepest post-World War II recession by far."

AFP - The global economy will contract 1.3 percent this year because the stabilization of financial markets will take longer than previously expected, the International Monetary Fund forecast Wednesday.

"The global economy is in a severe recession inflicted by a massive financial crisis and acute loss of confidence," the IMF said in its semi-annual World Economic Outlook (WEO) report.

The IMF warned it outlook was "exceptionally uncertain," with risks weighing on the downside, in its assessment that the world economy was sliding into "the deepest post-World War II recession by far."

"The global economy is in a severe recession inflicted by a massive financial crisis and acute loss of confidence," the IMF said in its semiannual World Economic Outlook (WEO) report.

The IMF warned the outlook was "exceptionally uncertain," with risks weighing on the downside, in its assessment that the world economy was sliding into "the deepest post-World War II recession by far."

It was the third time the IMF has slashed its 2009 world growth estimate this year. In January, the multilateral institution saw growth of 0.5 percent, but by March it had forecast a contraction of between 0.5 percent and 1.0 percent.

"Underlying the downgrade to the current forecast is the recognition that financial stabilization will take longer than previously envisaged, given the complexities involved in dealing with bad assets and restoring confidence in bank balance sheets, especially against the backdrop of a deepening downturn in activity that continues to expand losses on a wide range of bank assets," the 185-nation institution said.

Date created : 2009-04-22

COMMENT(S)