IMF cuts global growth forecast for 2011
International Monetary Fund released its Global Financial Stability Report and forecast global growth will slow more sharply than expected in 2011. Advanced economies, particularly in Europe, are expected to continue to cut budgets due to ongoing issues with sovereign debt, with emerging markets expected to lead growth. The financial sector is “still vulnerable to shocks and growth appears to be slowing as policy stimulus wanes”. The world economic forecast was cut from 5.9% to 5%. US GDP forecast was revised from 2.9% to 2.3%, while China’s GDP growth outlook was cut from 10.5% to 9.6%. The forecast for sub-Saharan Africa was cut from 5.9% to 5.5%.