IMF cuts its global economic growth forecasts

IMF cuts its global economic growth forecasts

The International Monetary Fund warned that an "uneven recovery is also a dangerous one" for the global economy as it again downgraded its growth forecasts for 2013, while holding out the prospect of relief late in the year. In its twice-yearly World Economic Outlook, the fund outlined high medium-term risks stemming from doubts about the eurozoneﾒs ability to claw its way out of its crisis and in US and Japanese ability to reduce public sector deficits and debt. But the IMF recognised that short-term perils had abated as financial markets approved of the eurozoneﾒs crisis management last year and the US authoritiesﾒ willingness to come to arrangements to limit planned dangerously rapid fiscal tightening. Highlighting the differential outlook for countriesﾒ economic prospects, Olivier Blanchard, chief economist of the IMF, said: "Given the strong interconnections between countries, an uneven recovery is also a dangerous one. Some tail risks have decreased, but it is not time for policy makers to relax." http://link.ft.com/r/BLH300/EKF7B8/3O62UJ/HY5H14/MJVSWM/4O/h?a1=2013&a2=4&a3=16