IMF: Economy enters “dangerous phase”..no shit Sherlock

http://www.bbc.co.uk/news/business-14984087

The global economy has entered a “dangerous new phase” of sharply lower growth, according to the International Monetary Fund (IMF).

The organisation warned that continuing political and economic woes in the US and eurozone could force them back into recession.

The IMF says the prognosis for economies in the developed world is “weak and bumpy expansion”.

It predicts their GDP will expand “at an anaemic pace of 1.5% in 2011″.

The IMF believes global growth will shrink to 4% in 2012, from 5% last year, on factors such as “major financial turbulence in the eurozone”.

It slashed its growth projections for the 17-nation eurozone to 1.6% in 2011, down from 2% predicted in June. Next year growth will be 1.1%, down from 1.7%, it forecast.

The US – the world’s largest economy – is likely to have weak growth “for years to come”.

And the UK, the growth forecast for 2011 has also been revised downwards, from 1.5% to 1.1%, while the forecast for 2012 was cut to 1.6%, from 2.3%.

“It would be wise for both governments and businesses [in the UK] to develop contingency plans in case such a double dip scenario does emerge,” said John Hawksworth, PwC’s chief economist.

Among the major advanced economies, the IMF now thinks Germany and Canada will be the only countries to grow by more than 2% in 2011.

In 2012, none will grow that fast, except Japan, as its economy rebounds from this year after an earthquake and tsunami ravaged the country.

BBC economics editor Stephanie Flanders points out that the shorter-term growth forecast has been cut for every country listed – with particularly large downward revisions for the US and Italy.

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this “news” coming to you from the group who made all the central banks do stimulus to save the world and now expect us all to be austerity raped to pay for it..of course its a dangerous phase..you knew this would happen!

401

~ by seeker401 on September 23, 2011.