The IMF's twice yearly World Economic Outlook report also said the world economy has "weakened significantly" and in a rebuke to politicians, said that "policy indecision... has added to financial strains".
It also said that the UK economy will grow at a slower pace than it had previously predicted.
Its UK growth forecast for 2011 has been revised downwards 1.5% to 1.1%.
For 2012, it has reduced its estimate of economic growth from 2.3% to 1.6%.
The government's official forecast for 2011 growth remains at 1.7% although the Chancellor has acknowledged this will be reduced when it is next reviewed.
Growth in the United States is forecast to slow to 1.5% in 2011 and 1.8% in 2012.
Christine Lagarde, the recently appointed IMF chief, has made repeated warnings that excessive austerity measures could cause another recession and urged European and US leaders to act to prevent a further deterioration in growth. Read More
0 comments (read or post your own):
Post a Comment
WANT YOUR COMMENT TO APPEAR?
Please, do not engage in any commercial or promotional activity. This includes linking to businesses, book sales, political or religious groups, etc. We welcome links that expound the discussion and investigation.