Afro FM 105.3: IMF: Global economy 'in danger zone' over euro crisis

IMF: Global economy 'in danger zone' over euro crisis
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Henok  on 26/01/2012 08:22:00
 
The IMF predicts the global economy will grow by 3.25% in 2012, down from an
earlier forecast of 4%. The growth forecast for the UK economy has been cut to
0.6% from 1.6%. But the eurozone is set for a "mild recession" in 2012, with GDP
expected to shrink by 0.5%, compared with a previous forecast of 1.1% growth.
Shadow chancellor Ed Balls called for the government to rethink its austerity
plan in the light of the IMF estimates. In response, the government said the IMF
predictions matched those made by the independent Office of Budgetary
Responsibility, which informs government economic policy. According to BBC
growth estimates have been reduced for the main eurozone countries, including
Germany, which is widely seen as the powerhouse of the region. Germany is
forecast to grow 0.3% in 2012, down from the 1.3% originally predicted in
September. France is expected to show 0.2% growth in 2012, down from 1.4%.
However, the IMF stands by its 1.8% growth prediction for the US, based on
recent strong domestic data on jobs and manufacturing. (BBC)