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The International Monetary Fund (IMF) just slashed its estimates for global growth, reports Bloomberg.According to its World Economic Outlook report, the IMF forecasts global GDP growth of 3.3% in 2012 and 3.9% in 2013. This compares to its previous forecast of 4% and 4.5%, respectively.
The organisation now expects the euro area to contract 0.5%, versus a previous call for 1.1% expansion.
Devloping economies are expected to grow 5.4%, versus a previous estimate of 6.1%. China and India are expected to grow 8.2% and 7.0%, respectively, down from a previous estimate of 9.0% and 7.5%.
The good news: U.S. growth estimates were unchanged at 1.8%.