IMF Predicts Slower Global Economic Growth

Posted October 8th, 2012 at 5:35 pm (UTC-5)
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The International Monetary Fund is cutting its prediction for global economic expansion this year, and the fund's experts say the risks of serious economic problems are growing.

The World Economic Outlook is being published ahead of meetings of key financial officials from around the world in Tokyo this week. It says global growth will slow to just a 3.3 percent annual rate this year, with advanced nations expanding more slowly and emerging markets making faster gains.

The authors warn that things could be worse if Washington or Europe fail to cope with political and financial problems promptly and effectively.

The study predicts U.S. growth will be just 2.2 percent this year, and a bit faster in 2013.

Among the nations that use the euro, the overall economy is expected to shrink by four-tenths of one percent this year, and will improve in 2013.

Developing nations in Asia are predicted to grow at an average pace of 6.7 percent this year, and faster next year.