Global Economy Facing Growing Dangers

Posted June 18th, 2011 at 12:55 am (UTC-5)
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The International Monetary Fund warns recent trends in major economies are “not reassuring” and says chances are growing the global economy could stumble.

The IMF's World Economic Outlook released Friday says the global economy expanded at a rate of 4.3 percent for the first three months of the year. But it points to recent weakness in the United States and other countries during the April through June period.

The report also says renewed concerns about financial stability in Europe could spread, and that many countries may still suffer due to fallout from the earthquake and tsunami in Japan.

The report says fast-growing emerging economies that need more raw materials may have problems as rising demand pushes up prices for food and fuel.

The IMF report urges advanced economies to find ways to cut spending without slashing programs that stimulate economic growth.

In the United States, Senator John Hoeven says free and fair trade agreements with counties such as Colombia, Panama and South Korea will stimulate economies.

In the weekly Republican address Saturday, Hoeven criticized President Barack Obama for not moving toward ratifying the deals, including the South Korean Free Trade Agreement.

Senator Hoeven says the Korean Agreement would increase exports by $10 billion and create nearly 280,000 jobs in the U.S.