Risk of Global Recession is growing – warned IMF

The International Monetary Fund (IMF) revised downward 2008 GDP growth estimates of major economies and the world yet again yesterday.


The last update on 29 January forecasted a GDP growth for the world of 4.1%. Now, it was predicted to be 3.7%. US economy was expected to grow slowest among major economies because of the financial crisis faced by it. The revised GDP growth estimates for various economies were:


The world     3.7%  

US                 0.5%  

Euro area     1.4%  

Japan           1.4%  

South Korea4.2%  

Taiwan         3.4%  

Hong Kong   4.3%  

Singapore    4.0%  

China           9.3%  

India             7.9%

(Source: The Business Times, 10 April 2008)

At home front, Ministry of Trade & Industry (MTI) forecasted Singapore to grow between 4-6% for whole of 2008. IMF was less optimistic about Singapore and gave a prediction at the lower end of the range provided by MTI. At 4%, this was much slower growth when compared with 7.7% actual growth in 2007.


Written on 4/10/2008 4:16 PM


Copyright © 2008, the author known as LKT in Singapore.


The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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