European Crisis To Slow World Economy, IMF Says

By: AP
By: AP

WASHINGTON (AP) -- The International Monetary Fund says a recession in Europe will slow the global economy this year and is urging world leaders to take steps that encourage growth rather than slash budgets.

The IMF forecasts global growth of 3.25 percent this year, slower than the 4 percent pace it projected in September.

The 17 nations that share the euro will shrink 0.5 percent this year. In September, the IMF had predicted 1.1 percent growth for the region.

Europe's recession should have only a modest impact on the United States. The IMF projects 1.8 percent growth for the year, unchanged from its September estimate.

The IMF warns that steep budget cuts will slow growth and undermine market confidence. The message runs counter to the push for budget cuts advocated by Germany.

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  • by 3 words on Jan 24, 2012 at 11:56 AM
    New. World. Order.
  • by Anonymous on Jan 24, 2012 at 11:41 AM
    the recession in Europe is an aftermath of the recession here, what a joke, the IMF director was fired for sexual misconduct, so their predictions are nothing to believe in....the US recession has been rippling all over the world for the past 2 years. You call that news?
  • by No need Location: NOTW on Jan 24, 2012 at 11:24 AM
    "mystery babylon" the harlot riding the shoulders of the "beast" will destroy many nations. God will send Yeshua Jesus Christ to destroy them and those who gather with them.
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