IMF revised GDP Growth Estimates Downwards
The International Monetary Fund (IMF) revised the 2008 GDP growth estimates of the major economies and the world on Tuesday in an update of its twice-yearly World Economic Outlook. The previous estimates by IMF were adjusted downwards to take into account the financial market problems and the possibility of recession in the US.
The world economy is now estimated to grow at 4.1% in 2008, down 0.3% from previous estimate by IMF. It is interesting to note that the World Bank in their own report released on 9 January was less optimistic and forecasted that the world economy will grow at 3.3%. (See my blog posting on 9 January 2008)
The US economy, being at the centre of the financial and economic difficulties, is estimated to grow only at 1.5% in 2008.
The 15-nation Eurozone is expected to be affected similarly as the US and is predicted to grow at 1.6%, not far from the US growth rate.
Both China and India are expected to grow at 6.9% in 2008. China on its own is estimated to grow at 10%, down from 11.4% actual GDP growth in 2007.
There is general consensus that the world economy will grow slower this year compared to 2007.
(Source: AFP, 30 January 2008)
Written on 1/30/2008 2:59 PM
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