A recent statement by the IMF claims that the world is perched precariously on the backs of the U.S. and European economies. Global growth will remain stunted until they improve.
According to their website, Europe’s persistent crisis has hindered global economic recovery into the second quarter. Predictions from the World Economic Outlook say global economy will grow 3.5% this year, whereas April’s forecast projected a 3.6% increase. 2013 is expected to see only 3.9% growth as well.
Forbes.com explains:
“The emerging nations of China, India, Brazil and smaller markets are slowing down worse than expected.
China’s growth hit a three year low in the second quarter at 7.5%. Brazil will release its second quarter data soon, but estimates are that the largest economy south of Texas grew under half a percent yet again after growing 0.2% in the first.”
In a Global Financial Stability Report update, the International Monetary Fund also stated that financial stability in the banking sector has become increasingly threatened as the global situation worsens.
Olivier Blanchard of the IMF said:
“More worrisome than these revisions to the baseline forecast is the increase in downside risks.”
Sorry, comments are closed for this post.