IMF report: Global economy is slowing sharply – Jan 24, 2012
The world economy is slowing sharply, and the euro region headed for recession this year, the International Monetary Fund predicted Tuesday in a bleak update of global conditions.
Overall, the world economy is expected to expand 3.25 percent in 2012 — down from the 4 percent projected by the IMF in the fall.
That figure includes 8.2 percent growth in China, still the world’s most quickly expanding economy, and 7 percent in India. U.S. Growth is forecast at 1.8 percent, the same as the fund projected in the fall.
In those cases and for the rest of the world, the IMF said growth was being crimped by what remains the world’s major economic risk — the ongoing financial crisis in the euro zone.
In a trio of reports released Tuesday morning, the IMF forecasts a “mild recession” for the 17-nation euro zone this year, and warns that matters could easily worsen.