I wrote a post on Gross Domestic Product (GDP) forecasts on 13 August 2011. Since then International Monetary Fund (IMF) came up with its latest global economic forecasts in their World Economic Outlook (WEO) report released recently.
“The global economy is in a dangerous new phase. Global activity has weakened and become more uneven, confidence has fallen sharply recently, and downside risks are growing. “ (Source: WEO September 2011)
The world output is now forecast to grow at 4 per cent for 2011 and again at 4 per cent for 2012. These numbers were 0.3 percentage point lower and 0.5 percentage point lower respectively from its WEO June 2011 projections.
The following provides the GDP growth forecast for some key countries.
GDP Forecast for 2011
United States 1.6%
Euro Area 1.6 %
Middle East and North Africa (MENA) 4.0%
Economic growth is expected to slow for United States, Euro area, and United Kingdom with all, except Germany, growing at less than 2 per cent. Japan is one country with negative growth caused mainly by the effect of earthquake in March. China is predicted to grow at 9.5 per cent lower than 10.3 per cent achieved in 2010. India is to grow at 7.8 per cent, which is a sharp decline from 10.1 per cent in 2010.
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