IMF offers bleak assessment of stalled recovery

center_img Top holiday drink recipes Former Arizona Rep. Don Shooter shows health improvement AP Business WriterTOKYO (AP) – Plagued by uncertainty and fresh setbacks, the world economy has weakened further and will grow more slowly over the next year, the International Monetary Fund says in its latest forecast.Advanced economies are risking recession, the international lending organization said in a quarterly update of its World Economic Outlook, and the malaise is spreading to more dynamic emerging economies such as China. Comments   Share   (Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.) The difference between men and women when it comes to pain Global efforts to ease credit and increase the amount of money available for lending are helping, but appear to be yielding diminishing returns, as are fiscal stimulus policies, the IMF warned.“Because uncertainty is high, confidence is low, and financial sectors are weak, the significant fiscal achievements have been accompanied by disappointing growth or recessions,” it said.Among other things, it says governments need to do more to relieve the burden of household debt that is constraining spending power and thus crippling demand.While large corporations pay record low rates for credit, households and small companies struggle to obtain bank loans, it said.Fortifying domestic demand is all the more crucial given weakening trade trends. The IMF forecasts that growth in world trade volume will slump to 3.2 percent this year from 5.8 percent last year and 12.6 percent in 2010.“Low growth and uncertainty in advanced economies are affecting emerging market and developing economies through both trade and financial channels, adding to homegrown weaknesses,” the IMF’s chief economist, Olivier Blanchard, said in a statement.But he told reporters Tuesday a more optimistic scenario was possible if the right measures are taken, such as fixing banks in European countries and reducing the uncertainty about U.S. policies.last_img

Leave a Reply

Your email address will not be published. Required fields are marked *