IMF to scale down global economic growth forecast due to financial crisis

Washington, Dec 2(ANI): The International Monetary Fund (IMF) has said it would scale down the global economic growth since financial crisis fuelled by the eurozone debt crisis was adversely affecting global economic output.

“The global recovery remains unbalanced and bumpy,” an IMF spokesperson Gerry Rice, said, adding that “there has been more of a slowdown in economic activity especially as we all know in Europe,” Xinhua reports

“The turmoil in the financial market is also contributing to further uncertainty about the economic forecast. We will have our forthcoming World Economic Outlook (WEO) updates toward the end of January next year probably and we will likely be revising downward the forecast to reflect these developments,” he added.

The IMF report had earlier predicted that global economy would grow at a slower pace of 4 percent in 2011.

Rice pointed out that IMF Managing Director Christine Lagarde has praised the latest move taken by the six major central banks to ensure that banks have access to foreign currency liquidity in the wake of financial crisis.

Six major central banks including the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the U.S. Federal Reserve and the Swiss National Bank Wednesday announced coordinated actions to provide liquidity support to ease global financial strains. (ANI)