30-01-2008
IMF reduces global growth forecasts
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The International Monetary Fund (IMF) had reduced its forecasts for worldwide growth in 2008.
Citing the possibility of a chain reaction from the credit crunch, the organisation believes that the economy will grow at its weakest rate since 2003.
"The financial market strains originating in the US sub-prime sector have intensified, while the recent steep sell-off in global equity markets was symptomatic of rising uncertainty," said the IMF, an organisation with a history going back to 1945. "Monetary policy faces the difficult challenge of balancing the risks of higher inflation and slower economic activity."
The organisation believes that Asia could be affected by a slowing down in the levels of western consumer spending, caused as a consequence of stricter lending criteria on the back of the sub-prime mortgage crisis in the US. Asian countries dependent upon exports could possibly be at risk.
Among the IMF's member countries are Australia, Japan, Mexico and the Netherlands.