Imf, Global Economy | featured news

The International Monetary Fund on Tuesday shaved projections for global economic growth for this year and next to take into account sharp government spending cuts in the United States and the latest struggles of recession-stricken Europe.

The fund said that growth is hardly expected to snap back to pre-crisis levels of 4.5 to 5.5 percent in the coming years.

The question is whether that’s 10 years from now, or 10 years from 2008, which means we have six more years until the world economy truly recovers from the 2008 housing and derivatives bubble that first exploded in the Manhattan offices of Bear Stearns and Lehman Brothers. That’s the view of International Monetary Fund chief economist Oliver Blanchard.

The global economy has stepped back from the brink of danger and signs of stabilization are emerging from the euro zone and the United States, but high debt levels in developed markets and rising oil prices are key risks ahead, the IMF said on Sunday.

European officials have rejected key recommendations from the United States and the International Monetary Fund, casting doubt on whether an emerging plan to address the region’s financial crisis will be as broad or fast acting as hoped.

The International Monetary Fund is sharply downgrading its outlook for the U.S. economy through 2012 because of weak growth and concern that Europe won't be able to solve its debt crisis.

Policymakers in advanced economies should use all available tools to boost growth, International Monetary Fund Managing Director Christine Lagarde said on Friday, calling for bold action to weather a "dangerous new phase" of recovery.

International Monetary Fund Managing Director Christine Lagarde said on Wednesday the global economy was rebounding from the financial crisis but recovery remains unbalanced.

The International Monetary Fund urged U.S. lawmakers Wednesday to raise the nation's borrowing limit. It warned that inaction could lead to a spike in interest rates that would harm the U.S. economy and world financial markets....

Afghanistan said on Sunday it won't be able to address a key International Monetary Fund concern over a looming cash crisis, sparked by a corruption scandal at a failed bank, for more than a month because lawmakers are on holidays.