✂ Fed’s first rate cut since 2020: Use our free Stock Screener to find new opportunities fastExplore for FREE

CORRECTED - UPDATE 1-Global economy to contract 0.6% in 2009-IMF aide

Published 03/17/2009, 11:16 AM

(Corrects spelling of Strauss-Kahn in fifth paragraph))

LISBON, March 17 (Reuters) - The International Monetary Fund expects the global economy to contract 0.6 percent this year, according to forecasts provided on Tuesday by an IMF official.

Teresa Ter-Minassian, an adviser to IMF Managing Director Dominique Strauss-Kahn, told reporters the figure was likely to be released shortly by the IMF. It compares with the IMF's last official forecast for the global economy, released in January, which pointed to global growth of 0.5 percent.

The U.S. economy is seen shrinking 2.6 percent this year, compared with a January forecast of a 1.6 percent contraction. The euro zone economy is expected to contract 3.2 percent, down from January's forecast of a 2 percent decline.

Japan's economy was seen diving 5 percent this year, sharply down from the last forecast of a 2.6 percent contraction.

Until now, all the IMF has said is that it expects global economic output to be "below zero" and Strauss-Kahn has called the current slowdown the "Great Recession".

"The scenario will be worse, but the managing director has already said this," Ter-Minassian said at a conference in Lisbon. "This is a true global crisis, impacting all parts of the world and countries at different levels of development."

The IMF's next official forecasts for the world economy will be released before the IMF and World Bank meetings in Washington on April 24 and 25.

Following are a breakdown of forecasts provided by the official:

2009 2010

Global economy -0.6 2.3

United States -2.6 0.2

Euro zone -3.2 0.1

Japan -5.0 0.0

United Kingdom -3.8 -0.2

Canada -2.0 1.2

G7 -3.2 0.2

Asia 3.6 5.8

Latin America -0.6 2.3

(For details of IMF's January forecasts please double click on [ID:nN28509162]) (Reporting by Sergio Goncalves; writing by Axel Bugge; editing by David Stamp)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.