The IMF report warns of recession and slow growth in both developed and developing countries until mid-2009.
With all the negativity in the ether regarding the stability of the world economy, it’s surprising that the International Monetary Fund took so long to throw its two cents into the fray. Never the fund to disappoint, the IMF issued a report Wednesday that warns of a pending global downturn following the U.S. credit crisis, as confidence falters in finance and credit markets around the world.
In its bleakest forecast in years, the International Monetary Fund said on Wednesday the world economy was set for a major downturn with the United States and Europe either in or on the brink of recession.
The IMF said a still-developing financial upheaval—the most violent since the 1930s—would exact a heavy economic toll as markets wrestle with a crisis of confidence and global credit is choked off.
The IMF’s assessment was written before a globally coordinated interest-rate cut of half a percentage point on Wednesday by the Federal Reserve, European Central Bank, Bank of England, Switzerland, Canada and Sweden.