Photo: Oli Scarff/ Getty Images
In a move forecast by Christine Lagarde July 6th, the IMF has reduced its global GDP growth forecast from 4.1 per cent to 3.9 per cent for 2013.The report, a quarterly update to the IMF’s World Economic Outlook, cites the Eurozone crisis as the principal risk for the global economy, and suggests the ECB further ease policy again.
When it released its last report was April, the IMF actually upgraded global growth forecasts for 2012. This reversal indicates how quickly economic conditions have deteriorated over the last three months.
The IMF cut forecasts for a variety of countries, but Spain (forecast reduced from 0.1 per cent growth to a 0.6 per cent contraction) the UK (cut to 1.4 per cent from 2 per cent) and India (reduced from 7.3 per cent to 6.5 per cent) saw the largest reductions in projected GDP growth.
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