The New York Times.
WASHINGTON — The International Monetary Fund, unimpressed with the policy actions taken to stem the European sovereign debt crisis, on Monday cut its forecast of growth in 2013.
In a periodic update of its economic forecast, the Washington-based
institution warned that the measures taken in Europe have not done
enough to quiet markets and restore growth. The I.M.F. maintained its
forecast of 2012 economic growth at 3.5 percent, but it cut its forecast
of growth in 2013 to 3.9 percent, down from the estimate of 4.1 percent
it made in April. In 2010, the world economy expanded 5.3 percent.
The I.M.F. cautioned that even those tepid forecasts might be too optimistic, if Europe does not do enough to ameliorate its debt crisis and if policies to improve growth in emerging markets fail to gain traction.
“Clearly, downside risks continue to loom large, importantly reflecting
risks of delayed or insufficient policy action,” the fund warned.
Countries experiencing the biggest reductions in expected growth include
Brazil and India, whose economies have cooled this year; newly
industrialized Asian economies, like Korea and Singapore, hit by a
broader global slowdown; and Britain, struck by austerity budgeting.
