IMF says 2008 global GDP growth to slow to 4.1% on U.S. downturn
Posted by: in Stocks Money NewsFiled under: International markets, Economic data
Global GDP growth has slowed and will continue to slow to 4.1% in 2008, dragged lower by the slow-growth U.S. economy, the International Monetary Fund announced Tuesday in its revised World Economic Outlook. The IMF’s previous global GDP growth estimate for 2008 was 4.9%.
[Note: In its report, the IMF said it has revised the model it uses to measure growth, a qualitative change that reduced GDP growth forecasts in 2005-2008 by 0.5%, or by one-half percentage point. ]
In lowering its 2008 growth estimate, the IMF said there was a risk that the ongoing turmoil in financial markets would further reduce domestic demand in advanced economies with more significant spillovers into emerging market and developing countries.
“Growth in emerging market countries that are heavily dependent on capital inflows could be particularly affected, while the strong momentum of domestic demand in some emerging market countries provides upside potential,” the IMF said.
Economic growth in the United States “appears to have slowed notably in the fourth quarter of 2007, with recent indicators showing weakening of manufacturing and housing sector activity, employment, and consumption.”
Continue reading IMF says 2008 global GDP growth to slow to 4.1% on U.S. downturn
Permalink | Email this | Comments
Entries (RSS)